The latest trading session saw Broadcom Inc. (AVGO) ending at $200.94, denoting a -1.32% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.64%. Elsewhere, the Dow lost 0.24%, while the tech-heavy Nasdaq lost 0.74%.
Shares of the chipmaker have appreciated by 39.2% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.67% 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 earnings per share (EPS) are projected to be $1.57, reflecting a 42.73% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $14.92 billion, up 19.5% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.60 per share and a revenue of $62.39 billion, indicating changes of +35.52% and +20.97%, respectively, from the former year.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. At present, Broadcom Inc. boasts a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 30.87 right now. This denotes a premium relative to the industry's average Forward P/E of 23.18.
One should further note that AVGO currently holds a PEG ratio of 1.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.52.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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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