Broadcom Inc. (AVGO) closed at $517.44 in the latest trading session, marking a +0.44% move from the prior day. This change outpaced the S&P 500's 0.39% loss on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Prior to today's trading, shares of the chipmaker had gained 14.55% over the past month. This has outpaced the Computer and Technology sector's gain of 5.83% and the S&P 500's gain of 6.77% in that time.
Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. This is expected to be December 8, 2022. On that day, Broadcom Inc. is projected to report earnings of $10.27 per share, which would represent year-over-year growth of 31.5%. Meanwhile, our latest consensus estimate is calling for revenue of $8.9 billion, up 20.1% from the prior-year quarter.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 0.41% lower. Broadcom Inc. is currently a Zacks Rank #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 12.85. This represents a discount compared to its industry's average Forward P/E of 14.75.
We can also see that AVGO currently has a PEG ratio of 0.85. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.88 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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