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Broadcom Inc. (AVGO) Stock Moves -1.45%: What You Should Know

Broadcom Inc. (AVGO) closed at $522.21 in the latest trading session, marking a -1.45% move from the prior day. This change was narrower than the S&P 500's 1.54% loss on the day. At the same time, the Dow lost 1.45%, and the tech-heavy Nasdaq lost 0.16%.

Heading into today, shares of the chipmaker had gained 12.06% over the past month, outpacing the Computer and Technology sector's gain of 1.63% and the S&P 500's gain of 4.54% 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. In that report, analysts expect Broadcom Inc. to post earnings of $10.27 per share. This would mark year-over-year growth of 31.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.9 billion, up 20.1% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Broadcom Inc.Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% lower. Broadcom Inc. is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 13.22. This valuation marks a discount compared to its industry's average Forward P/E of 14.81.

We can also see that AVGO currently has a PEG ratio of 0.88. 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 1.86 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 190, putting it in the bottom 25% 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.

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

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