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Broadcom Inc. (AVGO) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Broadcom Inc. (AVGO) closed the most recent trading day at $1,226.55, moving -1.52% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.6%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.92%.

Prior to today's trading, shares of the chipmaker had gained 2.05% over the past month. This has lagged the Computer and Technology sector's gain of 3.1% and the S&P 500's gain of 3.56% in that time.

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's upcoming EPS is projected at $10.32, signifying a 0.1% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $11.48 billion, showing a 28.78% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $46.90 per share and a revenue of $50.07 billion, representing changes of +11.01% and +39.8%, respectively, from the prior year.

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Investors might also notice recent changes to analyst estimates for Broadcom Inc. Recent revisions tend to reflect the latest 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. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.75% decrease. Broadcom Inc. is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 26.56. This signifies a discount in comparison to the average Forward P/E of 31.29 for its industry.

One should further note that AVGO currently holds a PEG ratio of 2.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AVGO's industry had an average PEG ratio of 4.99 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 199, positioning it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Broadcom Inc. (AVGO) : Free Stock Analysis Report

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