Is It The Right To Put Broadcom Stock Into The Watch List?


The company Broadcom has recently closed about eleven billion dollars’ acquisition of Symantec enterprise security business in order to help to drive the long-term earnings growth of the company. The chip giant will be rallied sharply in the uptrend of the stock market in this pandemic, but before investing, you have to investigate on NASDAQ: AVGO stock a buy in today’s stock market. The company earned 5.14 dollars per share on sales of about 5.74 billion dollars in the first quarter. But if you are considering a yearly basis, the company earnings fell one percent while sales rose four percent.

How Fast Is The Company Growing? 

The revenue of Broadcom (NASDAQ: AVGO) rise about 8 percent for about 22.6 billion dollars in the year 2019, and there are demand and growth in the infrastructure software business. The company is generated 77 percent revenue in their semiconductor solutions and the other 23 percent from their infrastructure software and the remaining silver from the IP licenses. In the current year, the revenue of the company will be raised 1 percent in the first quarter. The company generated 14 percent if the revenue during the quarter from its top customer. It provides wireless components for Apple devices.

How The Pandemic Affects The Company? 

The CEO of the company stated that the backdrop of the fundamental semiconductor backdrop is now improving, and they did not face any material impact in their business in the first quarter. They are expecting their revenue and adjusting EBITDA for rising about 3 percent in the second quarter. The free cash flow of Broadcom rose 9 percent annually for about 2.2 billion dollars in the first quarter, which easily covers 1.3 billion dollars in dividend payments. Hence, they can easily continue their 1- year streak of hikes in the dividend.

Is It The Right Time To Pick The Stock? 

Broadcom’s software and chip portfolios are diversified in the networking, data center, broadband, storage, industrial, wireless, mainframe markets, and more. The data center upgrades will remain robust in this pandemic since staying at home will boost the cloud-based and streaming services usage. The smartphone chip sales are also accelerating in the second half of this year as there are new smartphones of 5G hits the market. If you have an eye in this NASDAQ: AVGO stock, it is the right time to invest. The prosperous future is not fully reflected in the share price of the current year. You have to consider some other factors such as track record for making a sound investment decision.  You can check more stocks such as terp stock before stock trading.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.