In the latest trading session, Broadcom Inc. (AVGO) closed at $199.45, marking a +0.84% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.59%. On the other hand, the Dow registered a gain of 1.39%, and the technology-centric Nasdaq increased by 1.63%.

Coming into today, shares of the chipmaker had lost 8.28% in the past month. In that same time, the Computer and Technology sector lost 3.43%, while the S&P 500 lost 2.42%.

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 is predicted to post an EPS of $1.50, indicating a 36.36% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.62 billion, indicating a 22.23% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.31 per share and a revenue of $61 billion, signifying shifts of +29.57% and +18.28%, respectively, from the last year.

Investors should also note any 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 company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Broadcom Inc. possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Broadcom Inc. is presently being traded at a Forward P/E ratio of 31.36. This represents a premium compared to its industry's average Forward P/E of 25.22.

One should further note that AVGO currently holds a PEG ratio of 1.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.63.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 134, which puts it in the bottom 47% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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