The most recent trading session ended with Broadcom Inc. (AVGO) standing at $239.43, reflecting a +1.6% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.56% for the day. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq decreased by 0.51%.
Coming into today, shares of the chipmaker had gained 23.27% in the past month. In that same time, the Computer and Technology sector gained 11.21%, while the S&P 500 gained 7.37%.
Investors will be eagerly watching for the performance of Broadcom Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on June 5, 2025. The company is predicted to post an EPS of $1.57, indicating a 42.73% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $14.92 billion, up 19.5% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $6.62 per share and revenue of $62.39 billion. These results would represent year-over-year changes of +35.93% and +20.97%, respectively.
It is also important to note the recent changes to analyst estimates for Broadcom Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Broadcom Inc. is currently a Zacks Rank #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 35.6. For comparison, its industry has an average Forward P/E of 23.29, which means Broadcom Inc. is trading at a premium to the group.
Investors should also note that AVGO has a PEG ratio of 1.87 right now. 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 1.61 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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