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

Broadcom Inc. (AVGO) closed the most recent trading day at $470.05, moving -0.96% from the previous trading session. This move lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.25%.

Heading into today, shares of the chipmaker had gained 6.04% over the past month, lagging the Computer and Technology sector's gain of 7.76% and outpacing the S&P 500's gain of 2.37% in that time.

Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. This is expected to be March 4, 2021. On that day, AVGO is projected to report earnings of $6.55 per share, which would represent year-over-year growth of 24.76%. Meanwhile, our latest consensus estimate is calling for revenue of $6.61 billion, up 12.81% from the prior-year quarter.

AVGO's full-year Zacks Consensus Estimates are calling for earnings of $26.28 per share and revenue of $26.36 billion. These results would represent year-over-year changes of +18.59% and +10.36%, respectively.

Investors should also note any recent changes to analyst estimates for AVGO. These revisions help to show the ever-changing nature of near-term business trends. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. AVGO is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 17.99. This valuation marks a discount compared to its industry's average Forward P/E of 23.62.

We can also see that AVGO currently has a PEG ratio of 1.4. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% 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.

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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