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Broadcom Inc. (AVGO) Advances While Market Declines: Some Information for Investors

Broadcom Inc. (AVGO) closed at $1,309.13 in the latest trading session, marking a +0.98% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.38% for the day. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.13%.

Coming into today, shares of the chipmaker had gained 7.59% in the past month. In that same time, the Computer and Technology sector gained 3.93%, while the S&P 500 gained 4.74%.

The investment community will be paying close attention to the earnings performance of Broadcom Inc. in its upcoming release. The company is slated to reveal its earnings on March 7, 2024. The company is predicted to post an EPS of $10.59, indicating a 2.52% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $11.72 billion, indicating a 31.46% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $47.53 per share and a revenue of $50.07 billion, signifying shifts of +12.5% and +39.8%, respectively, from the last year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Broadcom Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% lower. Broadcom Inc. is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 27.28. This denotes a discount relative to the industry's average Forward P/E of 29.83.

Investors should also note that AVGO has a PEG ratio of 2.15 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors industry currently had an average PEG ratio of 4.9 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 204, putting it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Broadcom Inc. (AVGO) : Free Stock Analysis Report

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