In the latest close session, Broadcom Inc. (AVGO) was up +2.29% at $332.62. This change outpaced the S&P 500's 0.1% gain on the day. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq increased by 0.14%.
Heading into today, shares of the chipmaker had lost 7.55% over the past month, lagging the Computer and Technology sector's loss of 4.05% and the S&P 500's loss of 1.43%.
Market participants will be closely following the financial results of Broadcom Inc. in its upcoming release. The company plans to announce its earnings on March 4, 2026. It is anticipated that the company will report an EPS of $2.03, marking a 26.88% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $19.27 billion, up 29.16% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $10.22 per share and a revenue of $95 billion, demonstrating changes of +49.85% and +48.7%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Broadcom Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% upward. Broadcom Inc. is currently a Zacks Rank #3 (Hold).
Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 31.83. This indicates a discount in contrast to its industry's Forward P/E of 37.78.
One should further note that AVGO currently holds a PEG ratio of 0.89. 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 Electronics - Semiconductors industry had an average PEG ratio of 2.17 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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