NEW YORK (TheStreet) -- Broadcom (BRCM) stock is rising, up by 1.40% to $52.17 in mid-afternoon trading on Wednesday, after the company announced that shareholders approved Avago Technologies' (AVGO) takeover bid.

The Irvine, CA-based company provides semiconductor solutions for wired and wireless communication.

If the $37 billion deal goes through, the combined company would be the third-largest chipmaker in the world, Reuters reported. 

European Union competition regulators should approve the sale, Reuters reported last week. 

Separately, TheStreet Ratings team rates BROADCOM CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate BROADCOM CORP (BRCM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • BROADCOM CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, BROADCOM CORP increased its bottom line by earning $1.08 versus $0.74 in the prior year. This year, the market expects an improvement in earnings ($2.84 versus $1.08).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 337.8% when compared to the same quarter one year prior, rising from $98.00 million to $429.00 million.
  • 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. Along with this, the company maintains a quick ratio of 3.12, which clearly demonstrates the ability to cover short-term cash needs.
  • You can view the full analysis from the report here: BRCM

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.