Wi-Fi6, 5G, Artificial Intelligence; not many chipmakers serve such a wide panoply of markets as leading chipmaker Broadcom. On Thursday, the Relative Strength (RS) Rating for Broadcom (AVGO) climbed to 72, up from 69 the day before. The 72 rating means Broadcom stock has outperformed 72% of all stocks over the past year. It currently trades about 2% below an all-time high set in mid-February.
Market research shows that the best stocks often have an RS Rating above 80 as they launch their biggest price moves. See if Broadcom can continue to rebound and clear that threshold.
Other Key Broadcom Stock Ratings
Meanwhile, the San Jose, Calif.-based company’s other key ratings paint a more positive view of Broadcom stock. Its 93 IBD Composite Rating, for example, puts it in the top 7% of all companies for key metrics.
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, the company has posted rising EPS growth over the last six quarters. Sales growth has also moved higher over the same time frame. In its latest quarter, EPS rose 29% to $6.62 on a 15% increase in revenue to $6.61 billion.
Broadcom stock has been an outperformer since it came out of the gate in 2009. Its stock is up about 58% in the last year, and it’s soared about 2,560% from the end of August 2009 when it began trading.
Broadcom Stock No. 6 In Group
Broadcom stock earns the No. 6 rank among its peers in the Electronics-Semiconductor Fabless industry group. Nvidia (NVDA) and Monolithic Power Systems (MPWR) are also among the group’s highest-rated stocks.
Broadcom stock is working on a consolidation pattern with a 495.24 buy point. See if the stock can break out in heavy trading.
When you’re researching the best stocks to buy and watch, keep a close on eye on relative price strength.
This proprietary rating measures technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock’s price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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