Broadcom is an Attractive Tech Stock

BroadcomBroadcom Inc. (NASDAQ: AVGO) is a global semiconductor manufacturer and software infrastructure company. It engages in networking, software, broadband internet, wireless, storage, and data center market segments.

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Despite the Coronavirus Pandemic causing widespread economic disruption, Broadcom has managed to keep earnings and revenue in line with expectations. In the second quarter, the company reported a 4% increase in revenue, thanks partly to heightened demand in the data center and software segments. Broadcom develops services and hardware used in cloud computing infrastructure. With regional lockdowns in America and around the world, cloud utilization has increased. Broadcom could continue to benefit from this for as long as the health crisis persists.

Broadcom is profitable with strong EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization). From $5.74 billion in revenue in the second quarter, it generated $3.2 billion of EBITDA. Free cash flow was more than $3 billion in the same quarter, and the company is now sitting on over $9 billion of cash and equivalents. Its balance sheet is incredibly strong, helping to support its high dividend yield of 6.96%.

Tech stocks are volatile today, but an income option like Broadcom is worth considering for a well-diversified portfolio. The average analyst target price of $349.72 also suggests a reasonable upside for investors who buy now.

Key Data:

  • 1 Year Price Growth: 09%
  • YTD Price Growth: -2.01%
  • 3 Month Price Growth: 60%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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