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 $529.3 million.
  • AVGO has traded 20,604 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 1.3%. AVGO has a PE ratio of 3. Currently there are 25 analysts that rate Broadcom a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Broadcom has been 5.2 million shares per day over the past 30 days. Broadcom has a market cap of $59.8 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% with 2.03 days to cover. Shares are up 6.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Broadcom as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • BROADCOM LTD has improved earnings per share by 6.5% 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 two years. We feel that this trend should continue. During the past fiscal year, BROADCOM LTD increased its bottom line by earning $4.90 versus $1.16 in the prior year. This year, the market expects an improvement in earnings ($10.54 versus $4.90).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry average. The net income increased by 7.4% when compared to the same quarter one year prior, going from $351.00 million to $377.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, BROADCOM LTD's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • The gross profit margin for BROADCOM LTD is rather high; currently it is at 63.92%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.28% trails the industry average.

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