Broadcom Inc. (AVGO) Declines More Than Market: Some Information for Investors

Broadcom Inc. (AVGO) closed at $206.34 in the latest trading session, marking a -0.49% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.47% for the day. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.51%.The the stock of chipmaker has fallen by 10.56% in the past month, lagging the Computer and Technology sector's loss of 0.19% and the S&P 500's gain of 1.67%.The upcoming earnings release of Broadcom Inc. will be of great interest to investors. On that day, Broadcom Inc. is projected to report earnings of $1.50 per share, which would represent year-over-year growth of 36.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.62 billion, up 22.23% from the year-ago period.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.31 per share and revenue of $61 billion, indicating changes of +29.57% and +18.28%, respectively, compared to the previous year.It is also important to note the recent changes to analyst estimates for Broadcom Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.53% upward. As of now, Broadcom Inc. holds a Zacks Rank of #2 (Buy).Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 32.88. This valuation marks a premium compared to its industry's average Forward P/E of 24.4.Also, we should mention that AVGO has a PEG ratio of 1.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AVGO's industry had an average PEG ratio of 1.92 as of yesterday's close.The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 34% echelons of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Broadcom Inc. (AVGO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks