Should i buy broadcom stock

The stock price plunged as much as The catalyst that sent the AI-based lending platform lower was third-quarter financial results that far exceeded expectations, combined with an impressive increase of its full-year forecast. The recent spin-off of its managed infrastructure business into a company called Kyndryl NYSE: KD removes a noncore business from its balance sheet. Also, management promised that the two companies would maintain the current combined dividend.

Bloomberg -- Elizabeth Holmes grew so irritated with a probing Theranos Inc. Alan Eisenman, a former money manager and financial planner from Houston, told jurors at Hol.

Dow 30 35, Nasdaq 15, Russell 2, Crude Oil Gold 1, Silver CMC Crypto 1, FTSE 7, Nikkei 29, Read full article. More content below. Simply Wall St. In this article:. View our latest analysis for Broadcom What's the opportunity in Broadcom? Story continues. Recommended Stories. Motley Fool. Zacks Small Cap Research. Its free cash flow growth has decelerated this year, but it still easily covered its dividends with less than half of its FCF over the past 12 months.

It currently pays a forward dividend yield of 2. Broadcom's growth will likely decelerate in fiscal as its year-over-year comparisons normalize, but its stock still looks cheap at 17 times forward earnings. TI, which is expected to generate modestly higher revenue and earnings growth than Broadcom this year, trades at 23 times forward earnings.

Broadcom had a great run over the past few years, but I believe it will still head higher over the long term. It's well diversified, isn't struggling with any major chip shortages, pays out reliable dividends, and is expanding its margins even as it continues to pursue new acquisitions. Discounted offers are only available to new members.

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It's packed with all of the company's key stats and salient decision making information. The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank Agreement, Magnitude, Upside and Surprise ; provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock.

Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. Learn more about Zacks Equity Research reports. See more Zacks Equity Research reports. The Value Scorecard identifies the stocks most likely to outperform based on its valuation metrics.

This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher.

The Value Scorecard table also displays the values for its respective Industry along with the values and Value Score of its three closest peers. Value Style - Learn more about the Value Style. The Growth Scorecard evaluates sales and earnings growth along with other important growth measures.

Some of the items you'll see in this category might look very familiar, while other items might be quite new to some. But they all have their place in the Growth style. The Growth Scorecard table also displays the values for its respective Industry along with the values and Growth Score of its three closest peers.

Growth Style - Learn more about the Growth Style. The Momentum Scorecard focuses on price and earnings momentum and indicates when the timing is right to enter a stock. The analyzed items go beyond simple trend analysis. The tested combination of price performance, and earnings momentum both actual and estimate revisions , creates a powerful timeliness indicator to help you identify stocks on the move so you know when to get in and when to get out.

The Momentum Scorecard table also displays the values for its respective Industry along with the values and Momentum Score of its three closest peers.

Momentum Style - Learn more about the Momentum Style. The Zacks database contains over 10, stocks. For example, a regional bank would be classified in the Finance Sector. This allows the investor to be as broad or as specific as they want to be when selecting stocks. The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. When evaluating a stock, it can be useful to compare it to its industry as a point of reference.

Moreover, when comparing stocks in different industries, it can become even more important to look at the relative measures, since different stocks in different industries have different values that are considered normal. Zacks Premium - The way to access to the Zacks Rank. As an investor, you want to buy srocks with the highest probability of success.

This is also referred to as the cash yield. Like the earnings yield, which shows the anticipated yield or return on a stock based on the earnings and the price paid, the cash yield does the same, but with cash being the numerator instead of earnings. Many investors prefer EV to just Market Cap as a better way to determine the value of a company. That means these items are added back into the net income to produce this earnings number. Since there is a fair amount of discretion in what's included and not included in the 'ITDA' portion of this calculation, it is considered a non-GAAP metric.

Conventional wisdom says that a PEG ratio of 1 or less is considered good at par or undervalued to its growth rate. A value greater than 1, in general, is not as good overvalued to its growth rate.

So the PEG ratio tells you what you're paying for each unit of earnings growth. Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets. In short, this is how much a company is worth. Investors use this metric to determine how a company's stock price stacks up to its intrinsic value. Note; companies will typically sell for more than their book value in much the same way that a company will sell at a multiple of its earnings.

So, as with other valuation metrics, it's a good idea to compare it to its relevant industry. It's another great way to determine whether a company is undervalued or overvalued with the denominator being cash flow. A value under 20 is generally considered good. Our testing substantiates this with the optimum range for price performance between It is the most commonly used metric for determining a company's value relative to its earnings.

In this example, we are using the consensus earnings estimate for the Current Fiscal Year F1. In general, a lower number or multiple is usually considered better that a higher one.

In general, the lower the ratio is the better. It's calculated as earnings divided by price. A yield of 8. The most common way this ratio is used is to compare it to other stocks and to compare it to the 10 Year T-Bill.

Conversely, if the yield on stocks is higher than the 10 Yr. Since bonds and stocks compete for investors' dollars, a higher yield typically needs to be paid to the stock investor for the extra risk being assumed vs. It is used to help gauge a company's financial health.

A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. When comparing this ratio to different stocks in different industries, take note that some businesses are more capital intensive than others. So it's a good idea to compare a stock's debt to equity ratio to its industry to see how it stacks up to its peers first.

Cash flow can be found on the cash flow statement. It's then divided by the number of shares outstanding to determine how much cash is generated per share.

It's used by investors as a measure of financial health. Cash is vital to a company in order to finance operations, invest in the business, pay expenses, etc.

Since cash can't be manipulated like earnings can, it's a preferred metric for analysts. Using this item along with the 'Current Cash Flow Growth Rate' in the Growth category above , and the 'Price to Cash Flow ratio' several items above in this same Value category , will give you a well-rounded indication of the amount of cash they are generating, the rate of their cash flow growth, and the stock price relative to its cash flow.