Broadcom Inc. (AVGO) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Broadcom Inc. (AVGO)? Shares have been on the move with the stock up 28.4% over the past month. The stock hit a new 52-week high of $257.88 in the previous session. Broadcom Inc. has gained 10.8% since the start of the year compared to the -0.3% move for the Zacks Computer and Technology sector and the 4% return for the Zacks Electronics - Semiconductors industry.
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 6, 2025, Broadcom Inc. reported EPS of $1.6 versus consensus estimate of $1.5 while it beat the consensus revenue estimate by 2.03%.
For the current fiscal year, Broadcom Inc. is expected to post earnings of $6.63 per share on $62.49 billion in revenues. This represents a 36.14% change in EPS on a 21.18% change in revenues. For the next fiscal year, the company is expected to earn $7.88 per share on $72.82 billion in revenues. This represents a year-over-year change of 18.8% and 16.53%, respectively.
Broadcom Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Broadcom Inc. has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 38.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.8X. On a trailing cash flow basis, the stock currently trades at 42.9X versus its peer group's average of 16.9X. Additionally, the stock has a PEG ratio of 2.03. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Broadcom Inc. currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Broadcom Inc. fits the bill. Thus, it seems as though Broadcom Inc. shares could still be poised for more gains ahead.
Shares of AVGO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Nova Ltd. (NVMI). NVMI has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Nova Ltd. beat our consensus estimate by 4.81%, and for the current fiscal year, NVMI is expected to post earnings of $8.47 per share on revenue of $863.7 million.
Shares of Nova Ltd. have gained 8.2% over the past month, and currently trade at a forward P/E of 24.77X and a P/CF of 29.99X.
The Electronics - Semiconductors industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AVGO and NVMI, even beyond their own solid fundamental situation.
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 Report
Nova Ltd. (NVMI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Fiverr International (FVRR) Stock Moves -0.3%: What You Should Know
Fiverr International (FVRR) closed the latest trading day at $33.39, indicating a -0.3% change from the previous session's end. This change was narrower than the S&P 500's 0.53% loss on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.83%. The online marketplace for freelance services's stock has climbed by 14.97% in the past month, exceeding the Retail-Wholesale sector's gain of 4.46% and the S&P 500's gain of 5.17%. The investment community will be closely monitoring the performance of Fiverr International in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.72, reflecting a 24.14% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $107.67 million, up 13.74% from the prior-year quarter. FVRR's full-year Zacks Consensus Estimates are calling for earnings of $2.82 per share and revenue of $433.23 million. These results would represent year-over-year changes of +18.49% and +10.67%, respectively. It is also important to note the recent changes to analyst estimates for Fiverr International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.18% lower. Fiverr International is currently a Zacks Rank #3 (Hold). With respect to valuation, Fiverr International is currently being traded at a Forward P/E ratio of 11.9. This indicates a discount in contrast to its industry's Forward P/E of 25.16. The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 29% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. 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 Fiverr International (FVRR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Hasbro (HAS) Stock Moves -0.38%: What You Should Know
Hasbro (HAS) closed the latest trading day at $65.18, indicating a -0.38% change from the previous session's end. This change was narrower than the S&P 500's 0.53% loss on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.83%. The toy maker's stock has climbed by 6.51% in the past month, falling short of the Consumer Discretionary sector's gain of 6.96% and outpacing the S&P 500's gain of 5.17%. The investment community will be closely monitoring the performance of Hasbro in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.77, reflecting a 36.89% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $872.3 million, down 12.36% from the prior-year quarter. HAS's full-year Zacks Consensus Estimates are calling for earnings of $4.22 per share and revenue of $4.19 billion. These results would represent year-over-year changes of +5.24% and +1.41%, respectively. It is also important to note the recent changes to analyst estimates for Hasbro. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.44% higher. Hasbro is currently a Zacks Rank #3 (Hold). With respect to valuation, Hasbro is currently being traded at a Forward P/E ratio of 15.49. This indicates a premium in contrast to its industry's Forward P/E of 11.51. Also, we should mention that HAS has a PEG ratio of 1.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Toys - Games - Hobbies industry stood at 1.86 at the close of the market yesterday. The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 13, placing it within the top 6% of over 250 industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. 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 Hasbro, Inc. (HAS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Comfort Systems (FIX) Advances While Market Declines: Some Information for Investors
In the latest trading session, Comfort Systems (FIX) closed at $499.13, marking a +0.1% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.53%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 0.83%. Heading into today, shares of the heating, ventilation and air conditioning company had gained 15.38% over the past month, outpacing the Construction sector's gain of 3.1% and the S&P 500's gain of 5.17% in that time. Analysts and investors alike will be keeping a close eye on the performance of Comfort Systems in its upcoming earnings disclosure. On that day, Comfort Systems is projected to report earnings of $4.44 per share, which would represent year-over-year growth of 18.72%. In the meantime, our current consensus estimate forecasts the revenue to be $1.92 billion, indicating a 6.06% growth compared to the corresponding quarter of the prior year. FIX's full-year Zacks Consensus Estimates are calling for earnings of $18.93 per share and revenue of $7.65 billion. These results would represent year-over-year changes of +29.66% and +8.83%, respectively. It is also important to note the recent changes to analyst estimates for Comfort Systems. 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. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.72% higher. At present, Comfort Systems boasts a Zacks Rank of #2 (Buy). Looking at valuation, Comfort Systems is presently trading at a Forward P/E ratio of 26.35. This expresses a discount compared to the average Forward P/E of 31.36 of its industry. The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on 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 Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
