"Broadcom (AVGO) is an interesting company," TheStreet's Jim Cramer said Wednesday from the floor of the New York Stock Exchange. The tech company is set to report earnings on Thursday after the close.
After Avago bought Broadcom and took its name, it started diversifying revenue sources. As a result, it is no longer as dependent on Apple (AAPL) buying its chips as before, explained Cramer, the co-manager of the Action Alerts PLUS portfolio.
Righ now, even with diversified revenue, Broadcom is not a buy. Why? The market is "heavy" right now, Cramer said, and that means shares of even companies with good earnings are being sold.
Investors have been unkind to high-growth companies lately and could be unkind to Broadcom. If the stock does fall despite good earnings Thursday, that would create a prime buying opportunity.
For the current quarter, analysts are looking for Broadcom to earn $2.38 per share on $3.55 billion in revenue.
Another stock that has diversified its revenue is Action Alerts PLUS portfolio holding NXP Semiconductors (NXPI) . "We like NXP very much," Cramer said, especially after the company's acquisition of Freescale (FSL) .