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- Broadcom (AVGO) hit a new all-time high in morning trading on July 31.
- The stock has strong technical momentum and a 100% “Buy” signal via Barchart.
- Shares have more than doubled over the past year and are up 31% in the year to date.
- Revenue and earnings are projected to grow double-digits over the next two years.
Today’s Featured Stock
Valued at $1.4 trillion, Broadcom (AVGO) is a premier designer, developer, and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices and analog III-V based products.
What I’m Watching:
I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AVGO checks those boxes. Since the Trend Seeker signaled a buy on May 1, the stock has gained 54%.
AVGO Price vs. Daily Moving Averages:
Barchart Technical Indicators for Broadcom:
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Broadcom shares hit a new all-time high on July 31, touching $306.95 in morning trading.
- AVGO has a 100% technical “Buy” signal.
- The stock recently traded at $301.36, above its 50-day moving average of $264.32.
- Broadcom has a Weighted Alpha of +98.43.
- The stock has gained 111.26% over the past year.
- AVGO has its Trend Seeker “Buy” signal intact.
- Broadcom is trading above its 20, 50 and 100-day moving averages.
- The stock made 14 new highs and gained 10% in the last month.
- Relative Strength Index is at 71.54%.
- The technical support level is $297.86.
Don’t Forget the Fundamentals:
- $1.4 trillion market capitalization.
- Trailing price-earnings ratio of 59.48x.
- 0.78% dividend yield.
- Revenue is projected to grow 21.93% this year and another 20.53% next year.
- Earnings are estimated to increase 36.875 this year and an additional 23.60% next year.
Analyst and Investor Sentiment on Broadcom:
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are bullish, but some major advisory sites are split.
- The Wall Street analysts tracked by Barchart issued 33 “Strong Buy,” one “Moderate Buy” and three “Hold” opinions on the stock.
- Value Line gives the company its above-average rating with a price target of $335.
- CFRA’s Market Scope rates the stock a “4-Star Buy.”
- Morningstar thinks the stock is 32% overvalued.
- 211,550 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line:
Broadcom currently has momentum and is hitting new highs. It has positive sentiment from Wall Street, plus analysts project double-digit increases in revenue and earnings.
I caution that AVGO is volatile and speculative — use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
