Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
Broadcom Inc. (AVGO) closed the most recent trading day at $482.45, moving +1.53% from the previous trading session.
In the latest trading session, Broadcom Inc. (AVGO) closed at $482.45, marking a +1.53% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%.
Coming into today, shares of the chipmaker had lost 1.65% in the past month. In that same time, the Computer and Technology sector gained 3.07%, while the S&P 500 gained 2.85%.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. This is expected to be September 2, 2021. On that day, AVGO is projected to report earnings of $6.88 per share, which would represent year-over-year growth of 27.41%. Our most recent consensus estimate is calling for quarterly revenue of $6.76 billion, up 16.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $27.58 per share and revenue of $27.24 billion. These totals would mark changes of +24.46% and +14.05%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AVGO is currently trading at a Forward P/E ratio of 17.23. Its industry sports an average Forward P/E of 19.18, so we one might conclude that AVGO is trading at a discount comparatively.
We can also see that AVGO currently has a PEG ratio of 1.15. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% of all 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% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative.See Zacks’ Hottest Tech IPOs Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Broadcom Inc. (AVGO): Free Stock Analysis Report
To read this article on Zacks.com click here.