In the latest close session, Broadcom Inc. (AVGO) was down 5.93% at $393.06. This move lagged the S&P 500's daily loss of 0.17%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.28%.
Shares of the chipmaker witnessed a gain of 11.58% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.05%, and the S&P 500's gain of 3.84%.
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 September 2, 2026. The company is expected to report EPS of $3.22, up 90.53% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $29.47 billion, showing a 84.74% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.74 per share and revenue of $106.07 billion. These totals would mark changes of +72.14% and +66.03%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Broadcom Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, the Zacks Consensus EPS estimate has shifted 0.03% upward. As of now, Broadcom Inc. holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 35.6 right now. For comparison, its industry has an average Forward P/E of 42.5, which means Broadcom Inc. is trading at a discount to the group.
It is also worth noting that AVGO currently has a PEG ratio of 0.7. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.06.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
7 Best Stocks for the Next 30 Days
Just 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 +23.9% 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
