Buy Broadcom as it is set to consolidate between $570 and $630

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Apr 24, 2022
  • Broadcom at a price of $586 is trading at a fair value
  • The price will consolidate between $570 and $630
  • Buy Broadcom as it maintains bullish momentum

Broadcom Inc. (NASDAQ:AVGO) was in the news this week with antitrust scrutiny from the FTC. The company has been accused of forcing exclusive deals for its Wi-Fi and Bluetooth technologies, among other issues. Despite the case, Broadcom is among the few companies that closed 2.28% higher in a week. This occurs despite many firms being in the red.

The equities market has been under pressure for the last two to three weeks. Friday 22nd April saw about 90% of stocks closing in the red. The DJI lost nearly 2% of its value. Despite the bearish pressure, Broadcom remained strong.

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Broadcom at a price of $586 is rated a buy by Zacks Research. The stock is trading at a PEG ratio of 1.14 and a forward PE of 16.62. This shows that the stock is fairly priced by the market. It is worth noting that Broadcom is among a handful of technology stocks that are trading at fair value. This makes the stock highly enviable.

Broadcom technical analysis

Source – TradingView

Price chart analysis indicates that though Broadcom remains bullish, the momentum may be slowing down. This comes after the company retreated from a lower high of $628 compared to a higher high of $665 earlier this year. The stock may be headed for consolidation. This analysis projects that the price will stabilize between $570 and $630 in the foreseeable future. Consequently, the analysis finds that Broadcom is a buy at the current valuation.

Summary

Broadcom is among the few stocks closing higher this week as many companies shed value. The company is trading at fair value. Broadcom is a buy with prices set to stabilize between $570 and $630.

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