Yahoo Finance Broadcom Inc. (AVGO) Stock Slides as Market Rises: Facts to Know Before You Trade
The most recent trading session ended with Broadcom Inc. (AVGO) standing at $1,338.62, reflecting a -0.41% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.32% for the day. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.35%.
Coming into today, shares of the chipmaker had gained 1.41% in the past month. In that same time, the Computer and Technology sector lost 1.9%, while the S&P 500 lost 2%.
The upcoming earnings release of Broadcom Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $10.70, marking a 3.68% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $11.95 billion, indicating a 36.87% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $46.95 per share and a revenue of $50.37 billion, representing changes of +11.12% and +40.61%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Broadcom Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 2.28% downward. Broadcom Inc. presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Broadcom Inc. is currently exchanging hands at a Forward P/E ratio of 28.63. This indicates a discount in contrast to its industry's Forward P/E of 34.56.
Also, we should mention that AVGO has a PEG ratio of 2.1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 2.98 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 Report
