As ultrafast 5G wireless rolls out, leading edge companies are already looking toward next-generation 6G. Communications chip giant Broadcom (AVGO) is expected to be among the leaders in this race. On Thursday, the Relative Strength (RS) Rating for Broadcom stock climbed to 72, up from 66 the day before.
The 72 Relative Strength Rating means that Broadcom stock price performance is outpacing 72% of all stocks. The market’s biggest winners often have an RS Rating above 80 in the early stages of their moves. See if Broadcom can continue to show renewed price strength and hit that benchmark.
Broadcom Stock Has Near-Best Composite Rating
Among other key ratings, San Jose, Calif.-based Broadcom has an 86 EPS Rating, putting it in the top 14% of stocks on recent and long-term profit growth. Demonstrating market leadership, Broadcom stock also has a 97 Composite Rating, of a best-possible 99. IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Taking a look at revenue and profit performance, Broadcom has posted seven quarters of rising earnings growth. Sales growth has also increased over the same time frame. Last quarter, Broadcom’s earnings rose 29% to $6.96 per share on a 16% increase in revenue to $6.78 billion.
Broadcom stock holds the No. 9 rank among its peers in the Electronics-Semiconductor Fabless industry group. Advanced Micro Devices (AMD) and Lattice Semiconductor (LSCC) are among the group’s highest-rated stocks.
Broadcom stock is not currently offering a proper buying opportunity. See if the stock goes on to form a sound pattern that could kick off a new price move, for example a three-weeks-tight base or a rebound off of its 50-day or 10-week line.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive rating from Investor’s Business Daily tracks price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price behavior over the last 52 weeks stacks up against all the other stocks in our database.
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