Why Broadcom Inc. (AVGO) Outpaced the Stock Market Today

Broadcom Inc. (AVGO) closed at $168.15 in the latest trading session, marking a +0.98% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.05%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, added 0.4%.The the stock of chipmaker has fallen by 1.21% in the past month, lagging the Computer and Technology sector's gain of 4.59% and the S&P 500's gain of 5.75%.The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on December 12, 2024. The company is forecasted to report an EPS of $1.39, showcasing a 25.23% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $14.06 billion, indicating a 51.29% growth compared to the corresponding quarter of the prior year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Broadcom Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.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, there's been no change in the Zacks Consensus EPS estimate. Broadcom Inc. currently has a Zacks Rank of #2 (Buy).Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 27.23. This valuation marks a discount compared to its industry's average Forward P/E of 34.33.Also, we should mention that AVGO has a PEG ratio of 1.65. 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 1.85 based on yesterday's closing prices.The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 125, finds itself in the top 50% echelons of all 250+ industries.The Zacks Industry Rank gauges the strength of our 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.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks 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