Broadcom Inc. (AVGO) closed the most recent trading day at $378.16, moving +1.98% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.19%. Elsewhere, the Dow saw a downswing of 0.59%, while the tech-heavy Nasdaq depreciated by 0.05%.
Shares of the chipmaker witnessed a loss of 9.85% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 4.32%, and the S&P 500's gain of 0.55%.
The investment community will be paying close attention to the earnings performance of Broadcom Inc. in its upcoming release. On that day, Broadcom Inc. is projected to report earnings of $3.22 per share, which would represent year-over-year growth of 90.53%. Meanwhile, our latest consensus estimate is calling for revenue of $29.46 billion, up 84.69% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.73 per share and a revenue of $106.05 billion, representing changes of +71.99% and +65.99%, 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.01% higher within the past month. As of now, Broadcom Inc. holds a Zacks Rank of #2 (Buy).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 31.61. This valuation marks a discount compared to its industry average Forward P/E of 43.65.
Meanwhile, AVGO's PEG ratio is currently 0.57. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AVGO's industry had an average PEG ratio of 1.69 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 40, positioning it in the top 17% of all 250+ industries.
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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).