Broadcom (AVGO) Hits New Lifetime High - TheStreet

Trade-Ideas LLC identified

Broadcom

(

AVGO

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Broadcom as such a stock due to the following factors:

  • AVGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $352.0 million.
  • AVGO has traded 48,866 shares today.
  • AVGO is trading at a new lifetime high.

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More details on AVGO:

Broadcom Limited designs, develops, and supplies a range of analog and digital semiconductor connectivity solutions. The stock currently has a dividend yield of 1.2%. AVGO has a PE ratio of 1493. Currently there are 26 analysts that rate Broadcom a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Broadcom has been 2.6 million shares per day over the past 30 days. Broadcom has a market cap of $65.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.12 and a short float of 1.2% with 1.80 days to cover. Shares are up 11.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Broadcom as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • AVGO's very impressive revenue growth greatly exceeded the industry average of 14.8%. Since the same quarter one year prior, revenues leaped by 119.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, AVGO's share price has jumped by 27.88%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, BROADCOM LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 444.8% when compared to the same quarter one year ago, falling from $344.00 million to -$1,186.00 million.

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