Is it time to Buy before this week’s earning report Broadcom (NASDAQ:AVGO)

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Earnings results for Broadcom (NASDAQ:AVGO)

Broadcom Inc. is expected* to report earnings on 12/10/2020 after market close. The report will be for the fiscal Quarter ending Oct 2020. According to Zacks Investment Research, based on 4 analysts’ forecasts, the consensus EPS forecast for the quarter is $5.32. The reported EPS for the same quarter last year was $4.43.

Broadcom last issued its earnings results on September 3rd, 2020. The semiconductor manufacturer reported $5.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.24 by $0.16. The company had revenue of $5.82 billion for the quarter, compared to analysts’ expectations of $5.76 billion. Its revenue for the quarter was up 5.5% on a year-over-year basis. Broadcom has generated $17.41 earnings per share over the last year and currently has a price-to-earnings ratio of 78.1. Broadcom has confirmed that its next quarterly earnings report will be published on Thursday, December 10th, 2020. Broadcom will be holding an earnings conference call on Thursday, December 10th. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Broadcom (NASDAQ:AVGO)

30 Wall Street analysts have issued ratings and price targets for Broadcom in the last 12 months. Their average twelve-month price target is $397.97, predicting that the stock has a possible downside of 4.39%. The high price target for AVGO is $480.00 and the low price target for AVGO is $215.00. There are currently 4 hold ratings and 26 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Broadcom has received a consensus rating of Buy. The company’s average rating score is 2.87, and is based on 26 buy ratings, 4 hold ratings, and no sell ratings. According to analysts’ consensus price target of $397.97, Broadcom has a forecasted downside of 4.4% from its current price of $416.22. Broadcom has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Broadcom (NASDAQ:AVGO)

Broadcom pays a meaningful dividend of 3.07%, higher than the bottom 25% of all stocks that pay dividends. Broadcom has been increasing its dividend for 9 years. The dividend payout ratio of Broadcom is 74.67%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Broadcom will have a dividend payout ratio of 59.25% next year. This indicates that Broadcom will be able to sustain or increase its dividend.

Insiders buying/selling: Broadcom (NASDAQ:AVGO)

In the past three months, Broadcom insiders have sold 316.86% more of their company’s stock than they have bought. Specifically, they have bought $36,804,004.00 in company stock and sold $153,422,763.00 in company stock. Only 3.00% of the stock of Broadcom is held by insiders. 75.25% of the stock of Broadcom is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Broadcom (NASDAQ:AVGO

Earnings for Broadcom are expected to grow by 20.88% in the coming year, from $18.15 to $21.94 per share. The P/E ratio of Broadcom is 78.09, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 22.26. The P/E ratio of Broadcom is 78.09, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 80.67. Broadcom has a PEG Ratio of 1.49. PEG Ratios above 1 indicate that a company could be overvalued. Broadcom has a P/B Ratio of 6.64. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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