Chips · Stock report · Broadcom (NASDAQ: AVGO)
Broadcom — moved 11.9% on average after its last 11 reports; the latest barely moved (+0.4%)
The Closelooknet read
Broadcom (NASDAQ: AVGO) is a stock that rarely sits still after its numbers. On our Print Record it moved 11.9% on average, in either direction, in the three sessions after each of its last 11 reports. It rose more than 3% five times, fell more than 3% four times and stayed within 3% twice, even though it beat the earnings estimate all 11 times. The three sessions after the latest report, ending 8 September, finished at +0.4%. The stock jumped 8.8% on 9 November to $319.48, but is still down 11.6% over the month, which ranks 14th among the 86 stocks in our chip section, and our money-flow reading (a gauge of net buying pressure) is -4.4. What we watch: whether the stock closes back above the average close of the last 200 sessions, $367.09, before the December report, or slips toward its November low of $291.53.
Where Broadcom stands among 86 chip stocks
Broadcom ranks 14th of the 86 stocks in our chip section on one-month move, at -11.6%. Its peers across venues have fallen further or less: NVIDIA is down 22.1% over the month and AMD 16.4%, Global Unichip 20.7%, and Qualcomm 2.3%. Distance from the 52-week high also differs: Broadcom is 33.7% below its 2 June high of $481.57, NVIDIA 25.3% below its 6 October high, AMD 21.7% below its 6 October high, Global Unichip 22.0% below its 5 October high, and Qualcomm 31.7% below its 29 May high.
Our money-flow and quality readings
Our money-flow reading for Broadcom is -4.4, down 13.7 points over the past 21 sessions. Our composite score is 52 of 100, with quality at 88, growth at 83 and balance sheet at 64 above it. Four scores sit below the composite: valuation at 36, cash quality at 43, capital allocation at 31 and momentum at 22. The Piotroski score, a check of financial health, is scored 8 of 9.
The reported numbers
In its latest report, in early September, Broadcom posted earnings of $3.32 a share against $3.22 expected, and revenue of $29.59 billion against roughly $29.24 billion, up 86% from a year earlier. AI-semiconductor revenue was $16.7 billion, up 221%. The company guided fourth-quarter revenue to $34.8 billion against a $34.68 billion consensus, while infrastructure software at $8.75 billion came in under the $8.82 billion expected. The next report is due in December, with an estimate of $3.80 a share on revenue of about $34.72 billion.
Price trend and the Street
Broadcom closed at $319.48 on 9 November, up 8.8% on the day after opening about 4% higher; its typical daily swing is about 2.7%. It is still 7.9% below its 50-day average of $346.90 and 13.0% below its 200-day average of $367.09, and it is down 7.7% this year. The 52-week low is $291.53, set on 5 November. Analysts' average target is $514, 75.1% above the last close, with 55 buy, 5 hold and 0 sell ratings.
Closelooknet is a research diary. Nothing here is investment advice or a recommendation to buy or sell.