Trade-Ideas: Broadcom (BRCM) Is Today's Post-Market Leader Stock
- BRCM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $202.6 million.
- BRCM is up 3.3% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in BRCM with the Ticky from Trade-Ideas. See the FREE profile for BRCM NOW at Trade-Ideas More details on BRCM: Broadcom Corporation provides semiconductor solutions for wired and wireless communications. Its products offer voice, video, data, and multimedia connectivity in the home, office, and mobile environments. The stock currently has a dividend yield of 1.2%. BRCM has a PE ratio of 57.0. Currently there are 22 analysts that rate Broadcom a buy, 1 analyst rates it a sell, and 9 rate it a hold. The average volume for Broadcom has been 8.2 million shares per day over the past 30 days. Broadcom has a market cap of $20.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.90 and a short float of 2.1% with 1.87 days to cover. Shares are up 30.3% year-to-date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Broadcom as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- BRCM's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BRCM has a quick ratio of 2.30, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 56.18% to $606.00 million when compared to the same quarter last year. In addition, BROADCOM CORP has also vastly surpassed the industry average cash flow growth rate of -8.13%.
- The gross profit margin for BROADCOM CORP is rather high; currently it is at 54.54%. Regardless of BRCM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BRCM's net profit margin of 8.31% is significantly lower than the industry average.
- BROADCOM CORP's earnings per share declined by 15.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BROADCOM CORP reported lower earnings of $0.74 versus $1.24 in the prior year. This year, the market expects an improvement in earnings ($2.53 versus $0.74).
- BRCM, with its decline in revenue, underperformed when compared the industry average of 9.7%. Since the same quarter one year prior, revenues slightly dropped by 1.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full Broadcom Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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