Broadcom Inc. (AVGO) closed at $332.80 in the latest trading session, marking a +2.45% move from the prior day. This move outpaced the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a loss of 0.83%, and the technology-centric Nasdaq increased by 0.91%.
Shares of the chipmaker witnessed a loss of 7.02% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.49%, and the S&P 500's gain of 0.38%.
The upcoming earnings release of Broadcom Inc. will be of great interest to investors. The company's upcoming EPS is projected at $2.02, signifying a 26.25% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $19.27 billion, up 29.21% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10 per share and revenue of $95.34 billion, which would represent changes of +46.63% and +49.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.21% higher within the past month. Currently, Broadcom Inc. is carrying a Zacks Rank of #2 (Buy).
In the context of valuation, Broadcom Inc. is at present trading with a Forward P/E ratio of 32.49. Its industry sports an average Forward P/E of 37.44, so one might conclude that Broadcom Inc. is trading at a discount comparatively.
One should further note that AVGO currently holds a PEG ratio of 0.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.99 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 53, finds itself in the top 22% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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