Broadcom Inc. (AVGO) Beats Market Gains: What You Need to Know – November 23, 2021
Broadcom Inc. (AVGO – Free Report) closed at $ 555.12 in the last trading session, marking a movement of + 0.33% from the previous day. This move topped the S&P 500 daily gain by 0.17%. At the same time, the Dow Jones rose 0.55% and the tech-rich Nasdaq lost 0.4%.
As of today, shares of the chipmaker had gained 5.98% over the past month. At the same time, the IT and tech sector gained 4.39%, while the S&P 500 gained 3.19%.
Broadcom Inc. will look to show some strength as it approaches its next earnings release, which is expected to be December 9, 2021. In this report, analysts expect Broadcom Inc. to post a profit of 7. $ 75 per share. This would mark year-over-year growth of 22.05%. Meanwhile, Zacks’ consensus estimate for revenue projects net sales of $ 7.35 billion, up 13.7% from the previous year.
Investors should also note any recent changes in analyst estimates for Broadcom Inc. These recent revisions tend to reflect the evolving nature of near-term business trends. As such, the positive estimate revisions reflect the optimism of analysts about the business and profitability of the company.
Research indicates that these estimate revisions are directly correlated with short-term stock price dynamics. Investors can take advantage of this by using the Zacks ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.
Zacks’ ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable, externally audited track record of success, with No.1 stocks generating an average annual return of + 25% since 1988. Over the past 30 days, our consensus projection on EPS has remained stagnant. Broadcom Inc. is currently a Zacks Rank # 3 (Hold).
Based on its valuation, Broadcom Inc. has a forward P / E ratio of 17.84. Its sector has an average forward P / E of 25.38, so one could conclude that Broadcom Inc. is trading at a comparatively discount.
Meanwhile, AVGO’s PEG ratio is currently 1.2. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. Electronics – Semiconductor stocks have, on average, a PEG ratio of 1.54 based on yesterday’s closing prices.
The Electronics – Semiconductors industry is part of the Information technology and technology sector. This industry currently has a Zacks Industry Rank of 47, which places it in the top 19% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock market metrics and more on Zacks.com.