Broadcom Inc. [AVGO] – 3 compelling analyses why it’s a less risky Investment

Broadcom Inc. [AVGO] saw a change by -1.59% with the Thursday trading session, closing the trade at the price of $271.62. The company is holding 401.40M shares with keeping 389.67M floating shares. With the latest trading session, the stock is set at 74.48% off compared to its 52-week low, sliding -18.08% from high for the same period of time.

Since its 90-day high, the share price saw a move by -16.60%, trading +74.48% in oppose to its 90-day low While during the day, 401.40M shares valued at 2.31 million were bought and sold.

Broadcom Inc. [NASDAQ:AVGO]: Analyst Rating and Earnings

Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to Broadcom Inc. [AVGO] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in 1/30/2020. On average, stock market experts give AVGO an Overweight rating. The average 12-month price forecast for this stock is $271.62, with the high estimate being $372.00, the low estimate being $215.00 and the median estimate amounting to $300.00. This is compared to its latest closing price of $276.02.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Broadcom Inc. [AVGO] is sitting at 4.67. This is compared to 1 month ago, when its average rating was 4.67.

Pay attention to the next-scheduled financial results for this company to be released, which is slated for 06/04/2020.

Fundamental Analysis of Broadcom Inc. [AVGO]

Now let’s turn to look at profitability: with a current Operating Margin for Broadcom Inc. [AVGO] sitting at 15.90% and its Gross Margin at 55.40%, this company’s Net Margin is now 11.20. These measurements indicate that Broadcom Inc. [AVGO] is generating considerably more profit, after expenses are accounted for, compared to its market peers.

This company’s Return on Total Capital is 8.50, and its Return on Invested Capital has reached 5.52. Its Return on Equity is 10.90%, and its Return on Assets is 3.50%. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates AVGO financial performance.

Turning to investigate this organization’s capital structure, Broadcom Inc. [AVGO] has generated a Total Debt to Total Equity ratio of 131.35. Similarly, its Total Debt to Total Capital is 56.78, while its Total Debt to Total Assets stands at 48.59. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 120.33, and its Long-Term Debt to Total Capital is 51.95.

What about valuation? This company’s Enterprise Value to EBITDA is 13.21 and its Total Debt to EBITDA Value is 3.24. The Enterprise Value to Sales for this firm is now 5.89, and its Total Debt to Enterprise Value stands at 0.22. Broadcom Inc. [AVGO] has a Price to Book Ratio of 4.73, a Price to Cash Flow Ratio of 12.82 and P/E Ratio of 44.86. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.

Broadcom Inc. [AVGO] has 401.40M shares outstanding, amounting to a total market cap of 109.03B. Its stock price has been found in the range of 155.67 to 331.58. At its current price, it has moved down by -18.08% from its 52-week high, and it has moved up 74.48% from its 52-week low.

This stock’s Beta value is currently 0.92, which indicates that it is 2.90% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 55.29. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Broadcom Inc. [AVGO] a Reliable Buy?

Shares of Broadcom Inc. [AVGO], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.

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Author: Kevin Freeman