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Broadcom Inc. (AVGO) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Broadcom Inc. (AVGO) closed at $581.45, marking a -1.61% move from the previous day. This change lagged the S&P 500's daily loss of 1.3%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 5.51%.

Coming into today, shares of the chipmaker had gained 5.7% in the past month. In that same time, the Computer and Technology sector gained 14.67%, while the S&P 500 gained 6.41%.

Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. In that report, analysts expect Broadcom Inc. to post earnings of $10.16 per share. This would mark year-over-year growth of 21.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.89 billion, up 15.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $40.33 per share and revenue of $34.76 billion. These totals would mark changes of +7.15% and +4.7%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Broadcom Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. Broadcom Inc. is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 14.65. Its industry sports an average Forward P/E of 20.04, so we one might conclude that Broadcom Inc. 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. AVGO's industry had an average PEG ratio of 3.02 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 177, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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