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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know

In the latest trading session, Broadcom Inc. (AVGO) closed at $601.30, marking a +0.62% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.67%.

Prior to today's trading, shares of the chipmaker had gained 1.56% over the past month. This has lagged the Computer and Technology sector's gain of 17.44% and the S&P 500's gain of 8.32% in that time.

Broadcom Inc. will be looking to display strength as it nears its next earnings release, which is expected to be March 2, 2023. The company is expected to report EPS of $10.16, up 21.1% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.89 billion, up 15.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $40.33 per share and revenue of $34.76 billion, which would represent changes of +7.15% and +4.7%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Broadcom Inc.Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 14.82. For comparison, its industry has an average Forward P/E of 21.28, which means Broadcom Inc. is trading at a discount to the group.

Also, we should mention that AVGO has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 3.55 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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

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