Broadcom Inc. (AVGO) ended the most recent trading day at $148.62, moving +0.24% from the close of the previous session. In contrast, the Dow recorded a loss of 0.36%, and the tech-heavy Nasdaq gained 0.21%.
Prior to today’s trading, shares of the chipmaker had lost 12.82% over the past month, lagging the Computer and Technology sector’s loss of 11.22% and the S&P 500’s loss of 4.22% in that time.
Analysts and investors will be keeping a close eye on Broadcom Inc.’s performance on its upcoming earnings release. The company’s earnings report is scheduled to be released on September 5, 2024. The company’s earnings per share (EPS) is estimated at $1.20, representing an increase of 14.29% from the year-ago quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.9 billion, representing an increase of 45.36% from the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.72 per share and revenue of $51.37 billion, representing year-over-year changes of +11.58% and +43.43%, respectively.
Investors should also pay attention to any recent revisions to analyst estimates for Broadcom Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions to estimates express analysts’ positive view of the company’s business and its ability to generate earnings.
Based on our research, we believe these estimate changes are directly related to stock moves within the team. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and provides a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable outside-audited track record, with #1-ranked stocks delivering an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus Estimate for earnings per share has moved 0.58% higher. Currently, Broadcom Inc. has a Zacks Rank of #3 (Hold).
In the context of valuation, Broadcom Inc. is currently trading at a P/E ratio of 31.39. The industry average is 31.36, so one could conclude that Broadcom Inc. is trading at a premium comparatively.
We can also note that AVGO currently has a PEG ratio of 2.07. This metric is used similarly to the well-known P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. At the end of yesterday’s trading day, the Electronics – Semiconductors industry had an average PEG ratio of 2.59.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. Currently, this industry has a Zacks Industry Rank of 159, putting it in the bottom 38% of over 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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