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