Broadcom (AVGO, $544.72) tops Q4 earnings expectations
Broadcom posted fourth quarter earnings that handily topped the Street expectations. The chipmaker also indicated that it will maintain its current dividend strategy.
Adjusted earnings came in at $10.45 per share, well above analysts’ forecast of 17 cents. Revenues climbed +21% year-over-year to $8.93 billion. The company’s broadband revenues were up +20% while wireless revenues grew +13%.
Looking ahead, Broadcom expects adjusted earnings of around $5.94 per share for the current quarter, and predicts revenues to be $8.9 billion (i.e. flattish vs. the prior period).
Broadcom announced that it will maintain its current dividend policy of paying out 50% of its prior-year free cash flow to shareholders, even amidst Broadcom's assumption of around $8 billion in VMware debt (following the chipmaker’s acquisition of the latter. Broadcom shareholders will own around 88% of the company upon the deal’s completion, with VMware holding the remaining 12%).
AVGO in upward trend: 10-day moving average crossed above 50-day moving average on December 13, 2024
The 10-day moving average for AVGO crossed bullishly above the 50-day moving average on December 13, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 02, 2024. You may want to consider a long position or call options on AVGO as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AVGO just turned positive on December 04, 2024. Looking at past instances where AVGO's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
AVGO moved above its 50-day moving average on December 11, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
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 .
AVGO broke above its upper Bollinger Band on December 13, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for AVGO entered a downward trend on December 09, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 67, 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (16.611) is normal, around the industry mean (11.467). AVGO has a moderately high P/E Ratio (185.798) as compared to the industry average of (57.657). Projected Growth (PEG Ratio) (0.679) is also within normal values, averaging (3.177). Dividend Yield (0.009) settles around the average of (0.021) among similar stocks. P/S Ratio (22.222) is also within normal values, averaging (54.092).
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a manufacturer of digital and analog semiconductor products
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