Broadcom reported better-than-expected earnings and revenue in the quarter ending November 4.
Raking in $5.85 in earnings per share in its fourth quarter, the semiconductor technology company beat the $5.56 per share estimate of analysts polled by Bloomberg. Its revenue for the quarter increased +12.4% from the year-ago period to touch $5.45 billion, and surpassed analysts’ expected $5.40 billion.
Sales from the company's wireless communications business accounted for 31% of total revenue, edging past Broadcom's earlier expectations; but sales from this segment were still 5 percent lower than a year earlier. "We benefited from upside volumes of legacy phone generations at our North American OEM customer," President and CEO Hock Tan announced.
For the full year, Broadcom projects revenue of $24.50 billion, higher than analysts' estimate of $22.40 billion, according to IBES data from Refinitiv. Tank mentioned that going forward, the company’s two core areas would be semiconductor solutions and infrastructure software. Earlier this year, it acquired software maker CA Technologies for $19 billion.
AVGO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 34 cases where AVGO's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 47 cases where AVGO's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in of 348 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on April 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AVGO as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AVGO turned negative on April 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
AVGO moved below its 50-day moving average on April 17, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AVGO crossed bearishly below the 50-day moving average on April 22, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AVGO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.532) is normal, around the industry mean (6.522). P/E Ratio (48.102) is within average values for comparable stocks, (116.200). Projected Growth (PEG Ratio) (1.502) is also within normal values, averaging (2.602). Dividend Yield (0.015) settles around the average of (0.021) among similar stocks. P/S Ratio (14.535) is also within normal values, averaging (34.985).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AVGO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of digital and analog semiconductor products
Industry Semiconductors