Broadcom Stock Buy Hold or Sell Recommendation
| AVGO Stock | USD 159.67 5.07 3.08% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Broadcom is 'Cautious Hold'. The recommendation algorithm takes into account all of Broadcom's available fundamental, technical, and predictive indicators you will find on this site.
Check out 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. To learn how to invest in Broadcom Stock, please use our How to Invest in Broadcom guide. In addition, we conduct extensive research on individual companies such as Broadcom and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Broadcom. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
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
 |  |
Cautious Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Broadcom Trading Alerts and Improvement Suggestions
| Over 79.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from zacks.com: Ambarella Q3 Earnings and Revenues Surpass Estimates |
Broadcom Returns Distribution Density
The distribution of Broadcom's historical returns is an attempt to chart the uncertainty of Broadcom's future price movements. The chart of the probability distribution of Broadcom 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.
| Mean Return | 0.09 | Value At Risk | -3.47 | Potential Upside | 3.97 | Standard Deviation | 2.70 |
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 Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Broadcom, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Broadcom back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | Fisher Asset Management, Llc | 2024-09-30 | 23.4 M | Franklin Resources Inc | 2024-09-30 | 21.1 M | Swedbank Ab | 2024-09-30 | 18.4 M | State Street Corp | 2024-06-30 | 17.6 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 14.4 M | Swiss National Bank | 2024-09-30 | 13.1 M | Raymond James & Associates | 2024-09-30 | 12.7 M | California Public Employees Retrmnt Sys | 2024-09-30 | 12.6 M | Clearbridge Advisors, Llc | 2024-09-30 | 12.2 M | Vanguard Group Inc | 2024-09-30 | 468.6 M | Capital World Investors | 2024-09-30 | 211.4 M |
Broadcom Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (31M) | (294M) | (627M) | 27M | 24.3M | 43.9M | |
| Change In Cash | 2.6B | 4.5B | 253M | 1.8B | 2.0B | 2.1B | |
| Free Cash Flow | 11.6B | 13.3B | 16.3B | 17.6B | 20.3B | 21.3B | |
| Depreciation | 6.9B | 6.0B | 5.0B | 3.8B | 4.4B | 2.7B | |
| Other Non Cash Items | 269M | 219M | 412M | 141M | 162.2M | 150.4M | |
| Capital Expenditures | 463M | 443M | 424M | 452M | 519.8M | 419.1M | |
| Net Income | 3.0B | 6.7B | 11.5B | 14.1B | 16.2B | 17.0B | |
| End Period Cash Flow | 7.6B | 12.2B | 12.4B | 14.2B | 16.3B | 17.1B | |
| Dividends Paid | 5.5B | 6.2B | 7.0B | 7.6B | 8.8B | 9.2B | |
| Investments | (11.1B) | (245M) | (667M) | (689M) | (620.1M) | (651.1M) | |
| Net Borrowings | 13.2B | 7.7B | (1.6B) | (426M) | (383.4M) | (364.2M) | |
| Change To Netincome | 1.3B | 1.1B | 1.8B | 1.9B | 2.2B | 2.3B |
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 Semiconductors & Semiconductor Equipment 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'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 Jones | -0.13 | |
β | Beta against Dow Jones | 1.75 | |
σ | Overall volatility | 2.74 | |
Ir | Information ratio | -0.02 |
Broadcom Volatility Alert
Broadcom currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of -0.13. 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 bullish 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 financial instruments as prices fall.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 |
| Fundamentals | Broadcom | Peer Average |
| Return On Equity | 0.13 | -0.31 |
| Return On Asset | 0.077 | -0.14 |
| Profit Margin | 0.11 % | (1.27) % |
| Operating Margin | 0.32 % | (5.51) % |
| Current Valuation | 829.81 B | 16.62 B |
| Shares Outstanding | 4.67 B | 571.82 M |
| Shares Owned By Insiders | 2.04 % | 10.09 % |
| Shares Owned By Institutions | 78.94 % | 39.21 % |
| Number Of Shares Shorted | 67.68 M | 4.71 M |
| Price To Earning | 22.94 X | 28.72 X |
| Price To Book | 11.73 X | 9.51 X |
| Price To Sales | 16.44 X | 11.42 X |
| Revenue | 35.82 B | 9.43 B |
| Gross Profit | 24.95 B | 27.38 B |
| EBITDA | 20.55 B | 3.9 B |
| Net Income | 14.08 B | 570.98 M |
| Cash And Equivalents | 9.98 B | 2.7 B |
| Cash Per Share | 24.63 X | 5.01 X |
| Total Debt | 39.23 B | 5.32 B |
| Debt To Equity | 1.89 % | 48.70 % |
| Current Ratio | 2.32 X | 2.16 X |
| Book Value Per Share | 59.22 X | 1.93 K |
| Cash Flow From Operations | 18.09 B | 971.22 M |
| Short Ratio | 3.55 X | 4.00 X |
| Earnings Per Share | 1.24 X | 3.12 X |
| Price To Earnings To Growth | 1.16 X | 4.89 X |
| Target Price | 193.49 | |
| Number Of Employees | 20 K | 18.84 K |
| Beta | 1.19 | -0.15 |
| Market Capitalization | 769.43 B | 19.03 B |
| Total Asset | 72.86 B | 29.47 B |
| Retained Earnings | 2.68 B | 9.33 B |
| Working Capital | 13.44 B | 1.48 B |
Note: Disposition of 1852 shares by Hock Tan of Broadcom at 1124.422 subject to Rule 16b-3 [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.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 0.97 | |||
| Day Median Price | 159.67 | |||
| Day Typical Price | 159.67 | |||
| Price Action Indicator | (2.54) | |||
| Period Momentum Indicator | (5.07) | |||
| Relative Strength Index | 45.12 |
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 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. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Broadcom in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Baby Boomer Prospects
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. The Baby Boomer Prospects theme has 98 constituents at this time.
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Check out 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. To learn how to invest in Broadcom Stock, please use our How to Invest in Broadcom guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Is Semiconductors & Semiconductor Equipment space 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 1.881 | Dividend Share 2.105 | Earnings Share 1.24 | Revenue Per Share 10.429 | Quarterly Revenue Growth 0.164 |
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 if Broadcom is a good investment 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.