Avago Technologies Ltd (NASDAQ: AVGO) has reported earnings for its first fiscal quarter (ending January 31) of $3.20 versus $0.77 for the same period a year ago — an increase of 316%. However, this performance was $-3.72 short of the consensus estimate of $6.92. E.P.S. were $9.05 for the latest four quarters through January 31 versus $6.38 for the same period a year ago — an increase of 42%.
Recent Price Action
Avago Technologies Ltd (NASDAQ: AVGO) stock suffered a large decline of -4.2% on 3/4/21. The stock closed at $443.59. Moreover, this decline was accompanied by exceptionally high trading volume at 205% of normal. The stock has been strong relative to the market over the last nine months but has declined -7.8% during the last week.
Current PriceTarget Research Rating
AVGO’s future returns on capital are forecasted to be above the cost of capital. Accordingly, the company is expected to continue to be a major Value Builder.
Broadcom has a current Value Trend Rating of B (Positive). The Value Trend Rating reflects highly consistent signals from PTR’s two proprietary measures of a stock’s attractiveness. Broadcom has a slightly positive Power Rating of 66 and a slightly positive Appreciation Score of 68, resulting in the Positive Value Trend Rating.
In light of this new information we are reviewing our current Overall Rating of B. This review will be completed in the next several days.