Broadcom Inc. (AVGO) Falls More Steeply Than Broader Market: What Investors Need to Know

The latest trading session saw Broadcom Inc. (AVGO) ending at $176.07, denoting a -1.59% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 0.09%.Prior to today's trading, shares of the chipmaker had lost 1.87% over the past month. This has lagged the Computer and Technology sector's gain of 3.2% and the S&P 500's gain of 3.3% in that time.The upcoming earnings release of Broadcom Inc. will be of great interest to investors. The company's upcoming EPS is projected at $1.39, signifying a 25.23% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.06 billion, indicating a 51.29% increase compared to the same quarter of the previous year.Investors should also note any recent changes to analyst estimates for Broadcom Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Broadcom Inc. currently has a Zacks Rank of #2 (Buy).Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 29.25 right now. This signifies a discount in comparison to the average Forward P/E of 32.09 for its industry.It is also worth noting that AVGO currently has a PEG ratio of 1.77. 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. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 3.38.The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 43% of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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