Broadcom Inc. (AVGO) closed at $231.68 in the latest trading session, marking a +0.46% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.27%, and the Nasdaq, a tech-heavy index, lost 0.38%.
The chipmaker's stock has climbed by 38.76% in the past month, exceeding the Computer and Technology sector's gain of 19.26% and the S&P 500's gain of 13.07%.
Analysts and investors alike will be keeping a close eye on the performance of Broadcom Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on June 5, 2025. The company is expected to report EPS of $1.57, up 42.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.92 billion, up 19.5% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.60 per share and a revenue of $62.39 billion, signifying shifts of +35.52% and +20.97%, respectively, from the last year.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Broadcom Inc. is holding a Zacks Rank of #2 (Buy) right now.
In the context of valuation, Broadcom Inc. is at present trading with a Forward P/E ratio of 34.96. This indicates a premium in contrast to its industry's Forward P/E of 24.66.
We can also see that AVGO currently has a PEG ratio of 1.84. 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 currently had an average PEG ratio of 1.55 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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