Is Broadcom Stock a Good Investment?

Broadcom Investment Advice

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To provide specific investment advice or recommendations on Broadcom stock, we recommend investors consider the following general factors when evaluating Broadcom. This will help you to make an informed decision on whether to include Broadcom in one of your diversified portfolios:

Examine Broadcom's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Broadcom's leadership team and their track record. Good management can help Broadcom navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Broadcom's business and its evolving consumer preferences.
Compare Broadcom's performance and market position to its competitors. Analyze how Broadcom is positioned in terms of product offerings, innovation, and market share.
Check if Broadcom pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Broadcom's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Broadcom stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Broadcom is a good investment.

Sell

Buy

Strong Sell

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, total asset, and the relationship between the net income and price to earnings to growth . Given that Broadcom has a price to earning of 22.94 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.

Market Performance	OK	Details
Volatility	Very steady	Details
Hype Condition	Stale	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Almost neglects market trends	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Buy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unavailable	Details

Examine Broadcom Stock

Researching Broadcom's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 79.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.59. Broadcom last dividend was issued on the 23rd of December 2024. The entity had 10:1 split on the 15th of July 2024.

To determine if Broadcom is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Broadcom's research are outlined below:

	Broadcom appears to be risky and price may revert if volatility continues
	Over 79.0% of the company shares are held by institutions such as insurance companies
	On 31st of December 2024 Broadcom paid $ 0.59 per share dividend to its current shareholders
	Latest headline from benzinga.com: Options Corner Broadcoms Recent Dip Provides Another Profit-Scalping Trade

Broadcom uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Broadcom. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Broadcom's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	7th of March 2024 Upcoming Quarterly Report	View
	6th of June 2024 Next Financial Report	View
	31st of January 2024 Next Fiscal Quarter End	View
	5th of December 2024 Next Fiscal Year End	View
	31st of October 2023 Last Quarter Report	View
	31st of October 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Broadcom's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Broadcom's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2010-02-24	2010-01-31	0.03	0.034	0.004	13
2009-12-03	2009-10-31	0.024	0.028	0.004	16
2014-05-29	2014-04-30	0.076	0.085	0.009	11
2014-08-28	2014-07-31	0.105	0.126	0.021	20
2014-12-03	2014-10-31	0.169	0.199	0.03	17

Know Broadcom's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Broadcom is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Broadcom backward and forwards among themselves. Broadcom's institutional investor refers to the entity that pools money to purchase Broadcom's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Bank Of America Corp	2024-12-31	61.6 M
Northern Trust Corp	2024-12-31	49.1 M
T. Rowe Price Associates, Inc.	2024-12-31	47.5 M
Wellington Management Company Llp	2024-12-31	46.5 M
Nuveen Asset Management, Llc	2024-09-30	39.8 M
Amvescap Plc.	2024-12-31	36.3 M
Ubs Asset Mgmt Americas Inc	2024-12-31	34.4 M
Legal & General Group Plc	2024-12-31	32.8 M
Charles Schwab Investment Management Inc	2024-12-31	32.8 M
Vanguard Group Inc	2024-12-31	475.1 M
Blackrock Inc	2024-12-31	366.2 M

Note, although Broadcom's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Broadcom's market capitalization trends

The company currently falls under 'Mega-Cap' category with a current market capitalization of 949.38 B.

Market Cap

101 Billion

Broadcom's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.32	0.17
Return On Capital Employed	0.12	0.09
Return On Assets	0.09	0.07
Return On Equity	0.27	0.28

The company has Profit Margin (PM) of 0.11 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.32 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.32.

Determining Broadcom's profitability involves analyzing its financial statements and using various financial metrics to determine if Broadcom is a good buy. For example, gross profit margin measures Broadcom's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Broadcom's profitability and make more informed investment decisions.

Broadcom's Earnings Breakdown by Geography

Evaluate Broadcom's management efficiency

Broadcom has return on total asset (ROA) of 0.0813 % which means that it generated a profit of $0.0813 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1346 %, meaning that it created $0.1346 on every $100 dollars invested by stockholders. Broadcom's management efficiency ratios could be used to measure how well Broadcom manages its routine affairs as well as how well it operates its assets and liabilities. As of the 25th of February 2025, Return On Equity is likely to grow to 0.28, while Return On Tangible Assets are likely to drop 0.17. At this time, Broadcom's Other Assets are very stable compared to the past year. As of the 25th of February 2025, Asset Turnover is likely to grow to 0.64, while Net Tangible Assets are likely to drop (26.5 B).

	Last Reported	Projected for Next Year
Book Value Per Share	6.09	6.40
Tangible Book Value Per Share	(7.28)	(6.91)
Enterprise Value Over EBITDA	16.61	21.96
Price Book Value Ratio	8.66	4.72
Enterprise Value Multiple	16.61	21.96
Price Fair Value	8.66	4.72
Enterprise Value	101.9 B	56.2 B

At Broadcom, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.

Dividend Yield

0.0113

Forward Dividend Yield

0.0113

Forward Dividend Rate

2.36

Beta

1.039

Basic technical analysis of Broadcom Stock

As of the 25th of February, Broadcom shows the Risk Adjusted Performance of 0.0732, downside deviation of 4.1, and Mean Deviation of 2.66. Broadcom technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Broadcom's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Broadcom insiders, such as employees or executives, is commonly permitted as long as it does not rely on Broadcom's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Broadcom insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Hock Tan over six months ago Disposition of 1852 shares by Hock Tan of Broadcom at 1124.422 subject to Rule 16b-3
		Hock Tan over six months ago Disposition of 31 shares by Hock Tan of Broadcom at 1126.751 subject to Rule 16b-3
		Hock Tan over a year ago Acquisition by Hock Tan of 179400 shares of Broadcom subject to Rule 16b-3
		Harry You over a year ago Purchase by Harry You of 1000 shares of Broadcom
		Hock Tan over a year ago Sale by Hock Tan of 20866 shares of Broadcom
		Hock Tan over a year ago Sale by Hock Tan of 5328 shares of Broadcom

Broadcom's Outstanding Corporate Bonds

Broadcom issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Broadcom uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Broadcom bonds can be classified according to their maturity, which is the date when Broadcom has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	BNL 26 15 SEP 31 Corp Bond US11135EAA29	View
	US11135RAA32 Corp Bond US11135RAA32	View
	BROADCOM P BROADCOM Corp Bond US11134LAH24	View
	BROADRIDGE FINANCIAL SOLUTIONS Corp Bond US11133TAE38	View
	BROADCOM P BROADCOM Corp Bond US11134LAR06	View
	BROADRIDGE FINANCIAL SOLUTIONS Corp Bond US11133TAD54	View
	BROADRIDGE FINL SOLUTIONS Corp Bond US11133TAC71	View
	BROADCOM INC 144A Corp Bond US11135FBH38	View

View All Broadcom Corporate Bonds

Understand Broadcom's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Broadcom's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0732
	Market Risk Adjusted Performance	1.53
	Mean Deviation	2.66
	Semi Deviation	3.52
	Downside Deviation	4.1
	Coefficient Of Variation	1134.0
	Standard Deviation	4.69
	Variance	22.03
	Information Ratio	0.085
	Jensen Alpha	0.4026
	Total Risk Alpha	0.3723
	Sortino Ratio	0.0973
	Treynor Ratio	1.52
	Maximum Drawdown	41.83
	Value At Risk	(3.98)
	Potential Upside	5.52
	Downside Variance	16.81
	Semi Variance	12.41
	Expected Short fall	(2.95)
	Skewness	1.41
	Kurtosis	12.72

	Risk Adjusted Performance	0.0732
	Market Risk Adjusted Performance	1.53
	Mean Deviation	2.66
	Semi Deviation	3.52
	Downside Deviation	4.1
	Coefficient Of Variation	1134.0
	Standard Deviation	4.69
	Variance	22.03
	Information Ratio	0.085
	Jensen Alpha	0.4026
	Total Risk Alpha	0.3723
	Sortino Ratio	0.0973
	Treynor Ratio	1.52
	Maximum Drawdown	41.83
	Value At Risk	(3.98)
	Potential Upside	5.52
	Downside Variance	16.81
	Semi Variance	12.41
	Expected Short fall	(2.95)
	Skewness	1.41
	Kurtosis	12.72

Consider Broadcom's intraday indicators

Broadcom intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Broadcom stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	1.2 M
	Daily Balance Of Power	(0.70)
	Rate Of Daily Change	0.97
	Day Median Price	204.78
	Day Typical Price	204.03
	Price Action Indicator	(4.94)
	Period Momentum Indicator	(5.39)
	Relative Strength Index	57.28

Broadcom Corporate Filings

	7th of February 2025 Other Reports	View Verify
8K	13th of January 2025 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	8th of January 2025 Prospectus used primarily for registering securities for public sale.	View Verify
FWP	7th of January 2025 A written communication used by offering participants to offer securities to the public or to solicit securities transactions.	View Verify

Broadcom time-series forecasting models is one of many Broadcom's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Broadcom's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Broadcom Stock media impact

Far too much social signal, news, headlines, and media speculation about Broadcom that are available to investors today. That information is available publicly through Broadcom media outlets and privately through word of mouth or via Broadcom internal channels. However, regardless of the origin, that massive amount of Broadcom data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Broadcom news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Broadcom relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Broadcom's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Broadcom alpha.

Broadcom Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Broadcom can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Broadcom Historical Investor Sentiment

Investor biases related to Broadcom's public news can be used to forecast risks associated with an investment in Broadcom. The trend in average sentiment can be used to explain how an investor holding Broadcom can time the market purely based on public headlines and social activities around Broadcom. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Broadcom's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Broadcom and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Broadcom news discussions. The higher the estimate score, the more favorable the investor's outlook on Broadcom.

Broadcom Maximum Pain Price Across May 16th 2025 Option Contracts

Broadcom's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Broadcom close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Broadcom's options.

Broadcom Corporate Management

Ji Yoo	Director Relations	Profile
Kirsten Spears	Principal Accounting Officer	Profile
Greg Fischer	VP Division	Profile
Mark Brazeal	Chief Legal Officer	Profile
Mark JD	Chief Officer	Profile
Ed Redmond	Senior Division	Profile
Frank Ostojic	Senior Division	Profile

Already Invested in Broadcom?

The danger of trading Broadcom is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Broadcom is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Broadcom. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Broadcom is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Broadcom offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Broadcom's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Broadcom Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Broadcom Stock: