Broadcom Inc. (AVGO) Increases Yet Falls Behind Market: What Investors Need to Know

Broadcom Inc. (AVGO) closed at $228.73 in the latest trading session, marking a +0.09% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.24%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.08%.The chipmaker's shares have seen a decrease of 4.9% over the last month, not keeping up with the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37%.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 6, 2025. The company's earnings per share (EPS) are projected to be $1.50, reflecting a 36.36% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $14.62 billion, indicating a 22.23% growth compared to the corresponding quarter of the prior year.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.31 per share and a revenue of $61 billion, representing changes of +29.57% and +18.28%, respectively, from the prior year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Broadcom Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Broadcom Inc. presently features a Zacks Rank of #2 (Buy).Looking at valuation, Broadcom Inc. is presently trading at a Forward P/E ratio of 36.24. This expresses a premium compared to the average Forward P/E of 27.46 of its industry.One should further note that AVGO currently holds a PEG ratio of 2.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.91.The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 46% 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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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