NEW YORK ( TheStreet) – Broadcom (BRCM) posted a stellar year, fueled by the semiconductor solution company's broadband and connectivity business. And while the Irvine, Calif., company hit a new 52-week high of $43.35 on Nov. 28 and its shares are up 47.5% year to date, a question investors are likely asking is whether the stock has more room to run.
It does. And it's unlikely to end anytime soon.
There are several different factors to take into account, when assessing Broadcom's future performance. For starters, there is the upcoming December analyst day. During the past two years, the stock has popped higher on Broadcom's annual December analyst day.
This year's analyst event on Dec. 9 will likely focus on the company's expansion into the Internet of Things, which includes its WICED Sense Bluetooth Smart Sensor Tag. The $20 product allows the owner to link their mobile device to gather data via sensors and the advanced security ensures privacy on this wearable device. And as you know, wearables is an ever increasing market.
Broadcom will also point to its 40 additional partners for its expansion into the Ethernet IC market, as well as its prospects in the fast-growing Ultra-HD 4K TV market with its high-efficiency video coding in set-top boxes.
But perhaps one of the greatest drivers that will continue its monster stock performance of 2014 is that the stock still only trades at a forward PEG ratio of 1.11x, allowing for multiple expansion.