Broadcom Inc. (AVGO) closed the most recent trading day at $232.12, moving -0.13% from the previous trading session. This change lagged the S&P 500's 0.1% gain on the day. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.72%.
Coming into today, shares of the chipmaker had gained 29.88% in the past month. In that same time, the Computer and Technology sector gained 14.29%, while the S&P 500 gained 9.86%.
The investment community will be paying close attention to the earnings performance of Broadcom Inc. in its upcoming release. The company is slated to reveal its earnings on June 5, 2025. The company's upcoming EPS is projected at $1.57, signifying a 42.73% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $14.92 billion, up 19.5% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.60 per share and revenue of $62.39 billion, indicating changes of +35.52% and +20.97%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Broadcom Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. As of now, Broadcom Inc. holds a Zacks Rank of #2 (Buy).
With respect to valuation, Broadcom Inc. is currently being traded at a Forward P/E ratio of 35.23. This indicates a premium in contrast to its industry's Forward P/E of 24.67.
We can additionally observe that AVGO currently boasts a PEG ratio of 1.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.63 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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