AVGO: 2 essential Nasdaq stocks
The high tech Nasdaq outperformed the S&P 500 and the Dow Jones Industrial Average over the past month, gaining 6.7%. This outperformance is mainly attributable to strong corporate earnings reported by some heavyweights in the index and investor optimism about the rally in tech stocks which have been selling off in recent times.
Tech stocks, which are generally more growth-oriented, managed to improve their finances in the last quarter, as evidenced by better-than-expected and higher-than-year-ago income and earnings reported by most tech companies that have so far released quarterly results.
With most tech players now raising their earnings expectations, the index should maintain momentum in the near term. Thus, we believe that the leading stocks of Nasdaq Broadcom Inc. (AVGO) and Gilead Sciences Inc. (GILD) are well placed to take off.
Broadcom Inc. (AVGO)
Incorporated in 2018, AVGO focuses on technology leadership and advanced semiconductor and infrastructure software solutions. The company operates through two segments, semiconductor solutions and infrastructure software. It provides data center, enterprise, mainframe and cybersecurity networking and storage software focused on automation, surveillance and security, smartphone components, telecommunications and automation solutions. factory.
This month, AVGO and Google Cloud began a strategic collaboration to accelerate digital transformation and cloud service integration. This should improve AVGO’s software solutions and increase operational efficiency.
In January, AVGO announced the introduction of the world’s first 6E Wi-Fi phone, the Samsung Galaxy S21 Ultra, which is powered by the BCM4389 chip. This partnership is expected to enable AVGO to provide uninterrupted service and connectivity experience to Galaxy users.
AVGO’s net sales increased 14% year-over-year to $ 6.65 billion in fiscal 2021, the first quarter ended Jan.31, 2021. It said $ 2.97 billion in net income, while its adjusted EBITDA increased 20.7% year-over-year to $ 3.94 billion. during the period. The company’s EPS is up 25.9% from its value a year ago to $ 6.61.
A consensus EPS estimate of $ 6.42 for the current quarter ending April 2021 represents a 24.9% year-over-year improvement. Additionally, the company has beaten Street’s EPS estimates in three of the past four quarters. The consensus estimate of revenue of $ 6.51 billion for the current quarter is a 14.2% increase over the same period last year. The stock has gained 78.2% in the past year.
AVGO’s POWR ratings reflect this promising outlook. The company has an overall A rating, which translates into a strong buy in our proprietary rating system. POWR ratings assess stocks based on 118 different factors, each with its own weight.
AVGO is also ranked B in growth, stability and quality. In the B-rated semiconductor and wireless chip industry, it is ranked # 4 out of 98 stocks.
To view additional POWR ratings for value, momentum and sentiment for AVGO, click here.
Note that AVGO is one of the few handpicked stocks currently in the Reitmeister Total Return portfolio. Learn more here.
Gilead Sciences, Inc. (BROWN)
GILD is a research-based biopharmaceutical company that develops and markets drugs in areas of unmet medical need in the United States and globally. It offers therapies for the treatment of human immunodeficiency virus (HIV) infection and for hematology, oncology and cell therapy. With a still growing market for its drug remdesivir, the only COVID-19 antiviral treatment, the company has been able to generate substantial revenues.
This month, GILD announced that the United States Food and Drug Administration (FDA) has granted fast-track approval to its drug Trodelvy for adult patients with locally advanced or metastatic triple-negative breast cancer. So far, this disease has very few treatment options and approval should help the company meet the needs of patients with advanced urothelial cancer.
In the fourth quarter, ended December 31, 2020, GILD’s total revenue increased 26.2% year over year to $ 7.42 billion. Its gross margin on the product increased 1190 basis points from its value a year ago at 87.5%, while its operating margin increased year over year to reach 47.1%. The company’s EPS rose 99% year-over-year to $ 2.19 over the same period.
Analysts expected GILD’s revenue for the current quarter, ended March 31, 2021, to be $ 6.74 billion, or 21.6% year-over-year growth. ‘other. Additionally, the company has beaten Street’s EPS estimates in three of the past four quarters. Its EPS is expected to rise 58.6% for the next quarter, ending June 2021, to $ 1.76. GILD has gained 12.9% since the start of the year.
It’s no surprise that GILD has an overall A rating, which translates into a strong buy in our proprietary rating system. The stock also has an A rating for value and a B rating for growth, sentiment and quality. In the biotechnology industry, it is ranked # 3 out of 491 stocks.
In total, we rate GILD on eight different levels. Beyond what we have stated above, we have also assigned GILD ratings for Momentum and Stability. Get all GILD reviews here.
Click here to view our health sector report for 2021
AVGO shares were trading at $ 466.25 a share on Tuesday afternoon, down $ 5.60 (-1.19%). Year-to-date AVGO has gained 7.32%, compared to a 12.00% increase in the benchmark S&P 500 over the same period.
About the Author: Samiksha Agarwal
Samiksha Agarwalhas always had a keen interest in the financial markets. This led her to a career as a financial journalist. With his in-depth knowledge of fundamental analysis, his goal is to help investors identify untapped investment opportunities in the stock market. After…