Tickeron's AI Trading Robot Delivers Strong Performance, Earning 7.08% for AVGO
Tickeron's trading robot, featured in the Day Trader: Medium Volatility Stocks for Active Trading (TA&FA) program, has recently demonstrated its success during its week-long operation. Specifically, the robot delivered a remarkable 7.08% return for AVGO (Broadcom Inc.) in its latest trading session. This article aims to provide a technical analysis of AVGO, considering its momentum indicator and recent earnings report, to shed light on potential trading opportunities for investors.
Momentum Indicator Signals Potential Upside Move: On May 10, 2023, AVGO's Momentum Indicator surpassed the 0 level, indicating a potential shift towards an upward trend. This development presents an interesting opportunity for traders to consider buying the stock or acquiring call options. To further evaluate this signal, Tickeron's A.I.dvisor analyzed 94 similar instances in the past when the indicator turned positive. Out of these instances, the stock moved higher in 66 cases, suggesting a favorable probability of approximately 70% for AVGO to experience an upward move in the coming days.
Impressive Earnings Results Strengthen AVGO's Investment Profile: Examining AVGO's earnings report from March 02 reveals strong financial performance, which bolsters the stock's investment appeal. The reported earnings per share (EPS) stood at $10.33, surpassing the market estimate of $10.18. With 7.93 million shares outstanding, AVGO's current market capitalization is estimated at an impressive $338.85 billion.
The positive earnings surprise highlights the company's ability to generate robust profits, potentially reflecting a well-managed operation and successful execution of its business strategies. Such positive financial indicators often attract investors seeking stable and profitable opportunities in the market.
AVGO, backed by Tickeron's trading robot and supported by its momentum indicator and recent earnings report, appears to be an enticing prospect for traders looking to capitalize on potential medium-term gains. The stock's momentum indicator crossing above the 0 level indicates the likelihood of an upward move, with historical data suggesting a 70% probability of such an occurrence. Additionally, AVGO's impressive earnings per share and market capitalization underscore its financial strength and investor appeal.
However, it is essential for traders and investors to exercise diligence and conduct their own research before making any investment decisions. While technical indicators and earnings reports provide valuable insights, market conditions can change rapidly, and risks are inherent in trading. It is advisable to consult with financial professionals and consider one's risk tolerance and investment goals when evaluating opportunities in the stock market.
AVGO in upward trend: price may ascend as a result of having broken its lower Bollinger Band on September 21, 2023
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 36 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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 46 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 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 12, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on AVGO as a result. In of 98 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 September 08, 2023. 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 50 similar instances when the indicator turned negative. In of the 50 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 September 01, 2023 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 September 12, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 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 Aroon Indicator for AVGO entered a downward trend on August 29, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
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 SMR rating for this company is (best 1 - 100 worst), indicating very 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 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 (15.576) is normal, around the industry mean (7.944). P/E Ratio (25.641) is within average values for comparable stocks, (53.779). Projected Growth (PEG Ratio) (1.267) is also within normal values, averaging (2.342). Dividend Yield (0.022) settles around the average of (0.022) among similar stocks. P/S Ratio (9.833) is also within normal values, averaging (72.586).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 steady price growth. AVGO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of digital and analog semiconductor products
Industry Semiconductors
AVGO and
Correlation & Price change
A.I.dvisor indicates that over the last year, AVGO has been closely correlated with INTC. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if AVGO jumps, then INTC could also see price increases.
| Ticker / NAME | Correlation To AVGO | 1D Price Change % | ||
|---|---|---|---|---|
| AVGO | 100% | -2.12% | ||
| INTC - AVGO | 73% Closely correlated | -1.34% | ||
| AMKR - AVGO | 72% Closely correlated | -0.89% | ||
| AMAT - AVGO | 71% Closely correlated | -1.84% | ||
| TXN - AVGO | 71% Closely correlated | -1.83% | ||
| MCHP - AVGO | 70% Closely correlated | -1.78% | ||
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