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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know

Broadcom Inc. (AVGO) closed at $258.30 in the latest trading session, marking a +1.3% move from the prior day. This change outpaced the S&P 500's 0.02% loss on the day. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 0.39%.

Prior to today's trading, shares of the chipmaker had gained 12.72% over the past month. This has outpaced the Computer and Technology sector's gain of 0.38% and the S&P 500's loss of 2.56% in that time.

Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be March 21, 2019. The company is expected to report EPS of $5.19, up 1.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.76 billion, up 8.14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $22.51 per share and revenue of $24.51 billion, which would represent changes of +8.12% and +17.57%, respectively, from the prior year.

Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 3.06% lower within the past month. AVGO currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, AVGO is holding a Forward P/E ratio of 11.32. This represents a discount compared to its industry's average Forward P/E of 16.42.

Meanwhile, AVGO's PEG ratio is currently 0.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 1.43 at yesterday's closing price.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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