Broadcom Stock Buy Hold or Sell Recommendation

AVGO
 Stock
  

USD 490.41  8.04  1.61%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Broadcom is 'Strong Hold'. Macroaxis provides Broadcom buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Broadcom positions. The advice algorithm takes into account all of Broadcom's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Broadcom's buy-and-hold perspective. Please continue to Broadcom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Broadcom and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Broadcom.

Execute Broadcom Buy or Sell Advice

The Broadcom recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Broadcom. Macroaxis does not own or have any residual interests in Broadcom or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Broadcom's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell BroadcomBuy Broadcom
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Broadcom has a Risk Adjusted Performance of (0.17), Jensen Alpha of (0.08), Total Risk Alpha of (0.006036) and Treynor Ratio of (0.23)
Macroaxis provides advice on Broadcom to complement and cross-verify current analyst consensus on Broadcom. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Broadcom is not overpriced, please confirm all Broadcom fundamentals, including its current ratio, retained earnings, and the relationship between the net income and price to earnings to growth . Given that Broadcom has a price to earning of 33.94 X, we suggest you to validate Broadcom market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Broadcom Trading Alerts and Improvement Suggestions

Broadcom generated a negative expected return over the last 90 days
Broadcom was previously known as Broadcom Inc 8 and was traded on NASDAQ Exchange under the symbol AVGOP.
Broadcom has a strong financial position based on the latest SEC filings
Over 84.0% of the company shares are held by institutions such as insurance companies
Latest headline from realmoney.thestreet.com: When Times Are Tough, These 3 Mega-Caps Should Deliver the Dividends - RealMoney

Broadcom current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Broadcom analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Broadcom analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price688.56
Target Median Price700.00
Target High Price780.00
Recommendation Mean1.80
Number Of Analyst Opinions27
Target Low Price480.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Broadcom Returns Distribution Density

The distribution of Broadcom's historical returns is an attempt to chart the future uncertainty of Broadcom's future price movements. The chart of the probability distribution of Broadcom stock daily returns describes the distribution of returns around its average expected value. We use Broadcom price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Broadcom returns is essential to provide solid investment advice for Broadcom stock.
Mean Return-0.3Value At Risk-4.37
Potential Upside3.87Standard Deviation2.50
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Broadcom historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Broadcom Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Broadcom or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Broadcom stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Broadcom stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.08
β
Beta against DOW1.35
σ
Overall volatility
2.57
Ir
Information ratio -0.06

Broadcom Volatility Alert

Broadcom exhibits very low volatility with skewness of -0.04 and kurtosis of -0.03. However, we advise investors to further study Broadcom technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Broadcom's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Broadcom's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Broadcom Implied Volatility

Broadcom's implied volatility exposes the market's sentiment of Broadcom stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Broadcom's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Broadcom stock will not fluctuate a lot when Broadcom's options are near their expiration.

Broadcom Fundamentals Vs Peers

Comparing Broadcom's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Broadcom's direct or indirect competition across all of the common fundamentals between Broadcom and the related equities. This way, we can detect undervalued stocks with similar characteristics as Broadcom or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Broadcom's fundamental indicators could also be used in its relative valuation, which is a method of valuing Broadcom by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Broadcom to competition
FundamentalsBroadcomPeer Average
Return On Equity33.32 %(0.31) %
Return On Asset8.23 %(0.14) %
Profit Margin27.47 %(1.27) %
Operating Margin55.03 %(5.51) %
Current Valuation255.66 B16.62 B
Shares Outstanding412.87 M571.82 M
Shares Owned by Insiders2.33 %10.09 %
Shares Owned by Institutions84.03 %39.21 %
Number of Shares Shorted4.37 M4.71 M
Price to Earning33.94 X28.72 X
Price to Book8.42 X9.51 X
Price to Sales7.37 X11.42 X
Revenue28.5 B9.43 B
Gross Profit20.29 B27.38 B
EBITDA15.69 B3.9 B
Net Income7.53 B570.98 M
Cash and Equivalents10.22 B2.7 B
Cash per Share25.03 X5.01 X
Total Debt39.5 B5.32 B
Debt to Equity1.72 %48.70 %
Current Ratio2.44 X2.16 X
Book Value Per Share60.44 X1.93 K
Cash Flow from Operations14.14 B971.22 M
Short Ratio2.05 X4.00 X
Earnings Per Share15.00 X3.12 X
Price to Earnings To Growth1.09 X4.89 X
Number of Employees20 K18.84 K
Beta1.03-0.15
Market Capitalization210.19 B19.03 B
Total Asset49.97 B29.47 B
Retained Earnings69.64 M9.33 B
Working Capital4.05 B1.48 B
Current Asset7.12 B9.34 B
   Sale by Kirsten Spears of 2000 shares of Broadcom [view details]

Broadcom Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Broadcom . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution26223.59
Daily Balance Of Power(0.87)
Rate Of Daily Change0.98
Day Median Price491.29
Day Typical Price490.99
Market Facilitation Index0.0
Price Action Indicator(4.89)

About Broadcom Buy or Sell Advice

When is the right time to buy or sell Broadcom? Buying financial instruments such as Broadcom Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Broadcom investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2015 2020 2021 2022 (projected)
Receivables2.3 B2.07 B1.86 B1.64 B
Inventories1 B1.3 B1.17 B931.91 M

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Please continue to Broadcom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Broadcom information on this page should be used as a complementary analysis to other Broadcom's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is Broadcom's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Broadcom. If investors know Broadcom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Broadcom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.8
Market Capitalization
201.3 B
Quarterly Revenue Growth YOY
0.23
Return On Assets
0.0959
Return On Equity
0.4
The market value of Broadcom is measured differently than its book value, which is the value of Broadcom that is recorded on the company's balance sheet. Investors also form their own opinion of Broadcom's value that differs from its market value or its book value, called intrinsic value, which is Broadcom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Broadcom's market value can be influenced by many factors that don't directly affect Broadcom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Broadcom's value and its price as these two are different measures arrived at by different means. Investors typically determine Broadcom value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Broadcom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.