Broadcom hit the lower rail of upward sloped channel and it has strong fundamentals
I wrote about chip manufacturer Broadcom (Nasdaq: AVGO) back in January and at the time I pointed out the three rising valleys pattern the stock had formed. From the time I wrote about the stock through the high in February, the stock jumped 16.4%.
Flash forward to the last few days and we see that the three rising valleys have developed in to the lower rail of a trend channel and the stock just bounced off the lower rail.
We see that the daily stochastic readings had fallen in to oversold territory and they made a bullish crossover on March 11. We also saw a bullish crossover from the indicators back in January as the stock was taking off.
In addition to the bullish cross from the stochastics, the Tickeron AI Trend Prediction tool also generated a bullish signal on Broadcom on March 11. The signal showed a confidence level of 87% and past predictions have been accurate 65% of the time.
Broadcom has really strong fundamentals. The company has seen earnings grow by an average of 36% per year over the last three years and they grew by 27% in the most recent quarterly report. Sales have grown at an average annual rate of 47% per year and jumped by 12% in the most recent report.
In addition to the earnings and sales growth, the company’s management efficiency measurements are well above average. The return on equity is at 40% and the company boasts a profit margin of 47.8%.
Momentum Indicator for AVGO turns positive, indicating new upward trend
AVGO saw its Momentum Indicator move above the 0 level on June 23, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for AVGO just turned positive on June 26, 2025. 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 366 cases where AVGO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 June 26, 2025. 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 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 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 76, 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 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 (18.622) is normal, around the industry mean (9.257). P/E Ratio (100.602) is within average values for comparable stocks, (63.080). Projected Growth (PEG Ratio) (1.618) is also within normal values, averaging (2.334). Dividend Yield (0.008) settles around the average of (0.020) among similar stocks. P/S Ratio (23.310) is also within normal values, averaging (33.448).
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General Information
a manufacturer of digital and analog semiconductor products
Industry Semiconductors
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