Broadcom Inc. (AVGO) ended the most recent trading day at $167.71, up 1.2% from the previous trading session. The stock outperformed the S&P 500, which was up 0.97% for the day. Meanwhile, the Dow gained 0.58% and the Nasdaq, a tech-heavy index, gained 1.39%.
Heading into today, the chipmaker’s shares had gained 5.32% over the past month, outperforming the Computer and Technology sector’s loss of 5.36% and the S&P 500’s loss of 1.85% in that time.
Investors will be eagerly awaiting Broadcom Inc.’s performance in its upcoming earnings release. The company’s earnings report is scheduled to be released on September 5, 2024. The company is expected to report earnings per share of $1.20, up 14.29% from the corresponding quarter last year. At the same time, our latest consensus estimate is calling for revenue of $12.9 billion, up 45.36% from the year-ago quarter.
The Zacks Consensus Estimates for AVGO for the full year are calling for earnings of $4.72 per share and revenue of $51.37 billion. These results would represent changes of +11.58% and +43.43%, respectively, from the prior year.
In addition, it would be beneficial for investors to monitor the recent changes in analyst forecasts for Broadcom Inc. These changes help to highlight the constant alteration in near-term business trends. Consequently, upward revisions to estimates express analysts’ positive view of the company’s business and its ability to generate earnings.
Empirical research shows that these estimate changes are directly related to upcoming stock price movements. To capitalize on this, we have developed the Zacks Rank, a unique model that takes these estimate changes into account and provides a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of exceeding expectations, as validated by outside audits. #1-ranked stocks have delivered an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Broadcom Inc. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Broadcom Inc. is currently trading at a P/E ratio of 35.09. This represents a premium to the industry’s average P/E ratio of 33.75.
It is also important to note that AVGO currently has a PEG ratio of 2.31. This popular metric is similar to the widely known P/E ratio, with the difference that the PEG ratio also takes into account the company’s expected earnings growth rate. AVGO’s industry had an average PEG ratio of 2.68 as of yesterday’s close.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. The current Zacks Industry Rank of 148 puts this industry in the bottom 42% of all industries that include 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% of industries outperform the bottom half by a factor of 2 to 1.
For more information on all of these metrics and more, visit Zacks.com.
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Broadcom Inc. (AVGO): Free Stock Analysis Report
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