In the latest trading session, Broadcom Inc. (AVGO) closed at $440.07, marking a +0.91% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.87%.
Coming into today, shares of the chipmaker had lost 9.84% in the past month. In that same time, the Computer and Technology sector gained 3.59%, while the S&P 500 gained 1.61%.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be June 3, 2021. On that day, AVGO is projected to report earnings of $6.44 per share, which would represent year-over-year growth of 25.29%. Meanwhile, our latest consensus estimate is calling for revenue of $6.51 billion, up 13.31% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $26.91 per share and revenue of $26.95 billion, which would represent changes of +21.44% and +12.81%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AVGO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AVGO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 16.2. This represents a discount compared to its industry's average Forward P/E of 18.81.
It is also worth noting that AVGO currently has a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.57 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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.