Goldman Sachs: Broadcom Inc. (NASDAQ:AVGO) Is A Stock With High Consensus ROE

Insider Monkey10-19 23:57

We recently looked at Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE. In this piece, we will look at where Broadcom Inc. (NASDAQ:AVGO) ranks in the list...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2476776767?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/Bskd6lK342TG4xsO5_S2bA--~B/aD04MTY7dz0xNDU2O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/insidermonkey.com/85a3e9577fbf418d83d9f6f5a5267f0b","is_english":true,"pubTime":"2024-10-19 23:57","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2476776767","market":"us","top_or_hot":-1,"title":"Goldman Sachs: Broadcom Inc. (NASDAQ:AVGO) Is A Stock With High Consensus ROE","media":"Insider Monkey","content":"<div>\n<p>We recently looked at Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE. In this piece, we will look at where Broadcom Inc. (NASDAQ:AVGO) ranks in the list...</p>\n\n<a href=\"https://finance.yahoo.com/news/goldman-sachs-broadcom-inc-nasdaq-155728589.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Goldman Sachs: Broadcom Inc. (NASDAQ:AVGO) Is A Stock With High Consensus ROE</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGoldman Sachs: Broadcom Inc. (NASDAQ:AVGO) Is A Stock With High Consensus ROE\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-19 23:57 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/goldman-sachs-broadcom-inc-nasdaq-155728589.html><strong>Insider Monkey</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>We recently looked at Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE. In this piece, we will look at where Broadcom Inc. (NASDAQ:AVGO) ranks in the list...</p>\n\n<a href=\"https://finance.yahoo.com/news/goldman-sachs-broadcom-inc-nasdaq-155728589.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0097036916.USD","symbol_name":"贝莱德美国增长A2 USD","start_time":0,"source_url":"https://finance.yahoo.com/news/goldman-sachs-broadcom-inc-nasdaq-155728589.html","article_id":"2476776767","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Bskd6lK342TG4xsO5_S2bA--~B/aD04MTY7dz0xNDU2O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/insidermonkey.com/85a3e9577fbf418d83d9f6f5a5267f0b"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2476776767","pubTimestamp":1729353448,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"We recently looked at Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE. In this piece, we will look at where Broadcom Inc.  ranks in the list.As the fourth quarter of 2024 settles in, the narrative surrounding stocks on Wall Street is starting to shift. This is unsurprising since the beginning of the Federal Reserve’s interest rate cycles stands to change economic conditions in America. These will naturally affect businesses, and cyclical stocks along with financials should see an improved outlook.READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0097036916.USD":"贝莱德美国增长A2 USD","LU0081259029.USD":"UBS (LUX) EQUITY FUND - TECH OPPORTUNITY \"P\" (USD) ACC","QLD":"纳指两倍做多ETF","LU0345769128.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) ACC","LU0203347892.USD":"SCHRODER ISF QEP GLOBAL ACTIVE VALLUE \"A\" (USD)  INC AV","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","LU1548497426.USD":"安联环球人工智能AT Acc","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","PSQ":"纳指反向ETF","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","IE00B894F039.SGD":"Legg Mason ClearBridge - US Aggressive Growth A Acc SGD-H","ROE":"ASTORIA US QUALITY KINGS ETF","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","IE00BMCWC346.EUR":"GUINNESS EMERGING MARKETS EQUITY INCOME \"C\" (EUR) ACC","BK4575":"芯片概念","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","SQQQ":"纳指三倍做空ETF","LU0056508442.USD":"贝莱德世界科技基金A2","QID":"纳指两倍做空ETF","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","TQQQ":"纳指三倍做多ETF","BK4588":"碎股","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","NDAQ":"纳斯达克OMX交易所","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","LU0109392836.USD":"富兰克林科技股A","AVGO":"博通",".IXIC":"NASDAQ Composite","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","AVGOP":"BROADCOM INC PFD SER A 22","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","IE00BYV24P56.USD":"GUINNESS EMERGING MARKETS EQUITY INCOME \"C\" (USD) ACC","BK4581":"高盛持仓"},"translate_title":"高盛：博通公司（纳斯达克股票代码：AVGO）是一只共识ROE较高的股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AVGO":1,"AVGOP":1,".IXIC":1,"NDAQ":1,"ROE":1,"US12M.BOND":0.68,"US10Y.BOND":0.68,"US2Y.BOND":0.68,"US30Y.BOND":0.68,"US3Y.BOND":0.68,"US5Y.BOND":0.68,"US6M.BOND":0.68,"US7Y.BOND":0.68,"US912797HE00.BOND":0.6,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"TQQQ":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"We recently looked at Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE. In this piece, we will look at where Broadcom Inc. (NASDAQ:AVGO) ranks in the list.\nAs the fourth quarter of 2024 settles in, the narrative surrounding stocks on Wall Street is starting to shift. This is unsurprising since the beginning of the Federal Reserve’s interest rate cycles stands to change economic conditions in America. These will naturally affect businesses, and cyclical stocks along with financials should see an improved outlook.\nFor instance, consider two reports by investment bank Morgan Stanley. One of these was released before the interest rate cut, and it covered the bank’s thoughts about the stock market and the US economy for September. The other came in October, after the rate cut. In its September report,  MS laid out three scenarios for the flagship S&P index’s performance for the rest of this year. The best case scenario posits that the index would close at 5,650 points in the near term, while the “attractive” and “fair” scenarios predict a closing of 5,200 and 5,350 points, respectively.  Yet, the market has outperformed even the best scenario, as its recent reading is 5,764.\nREAD ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock\nThe bank also shares that inflation is finally dropping in America. This fact is explained through the S&P’s second quarter earnings performance. In fact, the shifting inflationary trends have set new highs for a decade when we consider sales and earnings surprises for the index according to MS. Its data shows that when inflation was soaring in Q4 2022, the net of positive and negative EPS surprises stood in lowest quintile since businesses struggled with costs. This was despite the fact that during the same time period the net of positive and negative revenue surprises was in the 70% percentile. However, now that inflation has dropped, data for the second quarter earnings season shows that the EPS surprise was in the uppermost quintile (above 80%) while the revenue surprise had dropped to roughly 35%. This data covers the past ten years, and as a result, it illustrates the momentous shifts that the market is undergoing right now.\nSince interest rates are the hottest topic on Wall Street, MS also commented on its expectations for them. At the September start, the bank posited that markets were expecting 100 basis points of cuts by 2024 end. The bank shared that it thought “this looks aggressive unless the U.S. economy has a hard landing, but this is not our base case.” With September’s 50 basis points cut out of the way, these expectations have remained unchanged as the CME Fed Watch Tool shows that for the Fed’s November and December meetings, the market has set the probabilities for a 25 basis point cut in each at 85.5% and 82.1%, respectively. These cuts are important for determining the market’s direction, as MS’ data shows that when economic activity as measured by the ISM Manufacturing Index sat at ~67 in 2010, the S&P’s 12 month total return was 30%.\nShifting gears to the October report, MS cautions that while historically equities have outperformed following the first Fed rate cut, elevated valuations, and “consensus forecasting of EPS acceleration rather than decline, equities upside after the first cut may prove more limited this cycle.” The bank’s key stock market insight from its October report comes through its comments about cyclical stocks, though. MS shares that as upward economic growth surprises softened from April through August, “sector and factor trends skewed defensive, consistent with softer economic growth.” However, this might not be the case moving forward, as shown by the Citi Global Economic Surprise Index. MS outlines that this index had bottomed out in August with a ~-25 reading, which had jumped to roughly -12 in September. This trend was mirrored in the difference between global cyclical and defensive sectors, with the reading also moving upward as the economic surprises jumped.\nThese factors are key when we analyze Goldman Sachs’ list of stocks with the highest expected ROE since the bank believes that stock quality will be determined by economic growth and economic rates. The bank also recently upped its 2024 closing target for the S&P to 6,000 points. This was the fourth revision of its target and a sizeable increase from the previous estimate of 5,600 points. This increase was also accompanied by optimism for the index’s earnings. GS now believes that S&P’s 2025 earnings will sit at $268, for a 4.7% revision from the previous estimate of $256. Its 2024 estimate is unchanged, though, and its value of $241 implies that earnings next year will grow by 11.2%.\nAs for the next 12 months, GS believes that the S&P will sit at 6,300 points, for an 8.9% growth over its recent value of 5,779. As MS’ data pointed out that EPS surprises are growing as inflation tames, Goldman is also of a similar view. This is because the bank’s chief US equity strategist David Kostin shares that the upward EPS revision is reflective of the fact that the “macro backdrop remains conducive to modest margin expansion, with prices charged outpacing input cost growth.” In a later note, the analyst outlined that “Over the past year, performance of several quality factors has tracked the broad trajectory of market views on growth and monetary policy.” Kostin added that “A positive jobs print could prompt some investors to rotate out of expensive ‘quality’ stocks into less-loved lower quality firms as the market would likely price lower odds of substantial labor market weakening.”\nOur Methodology\nTo make our list of Goldman Sachs’ stocks with the highest consensus ROE, we used the bank’s latest list of 50 such stocks and chose those with a 5% or higher consensus ROE.\nFor these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).\n A senior manager studying a market index alongside a team of young stock market analysts. \nBroadcom Inc. (NASDAQ:AVGO)\nConsensus ROE: 9%\nNumber of Hedge Fund Investors in Q2 2024: 130\nBroadcom Inc. (NASDAQ:AVGO) is one of the biggest technology companies in the world. The firm designs and sells a variety of semiconductor products such as modems, application specific integrated circuits (ASICs), and network controllers. These position Broadcom Inc. (NASDAQ:AVGO) well to benefit from a growing data center industry that is fueled by AI use. Additionally, the firm also benefits from its ASIC business when it comes to AI since ASICs are important chips for AI use cases. This is because they can be programmed to compute custom workloads, which is key for running custom AI models. Broadcom Inc. (NASDAQ:AVGO) stands to benefit from the shift in the industry to custom AI chips, with media reports indicating that OpenAI has approached it to develop a custom AI chip. The company also adds margin heavy revenue to its business via its cybersecurity division. Broadcom Inc. (NASDAQ:AVGO)’s recent VMWare acquisition enabled it to grow software revenue by 300% in fiscal Q3. Potential tailwinds include customers like Apple moving away from the firm to design custom chips for their products.\nBaron Funds mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q2 2024 investor letter. Here is what the firm said:\n\n“Broadcom Inc. is a global technology leader that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. The stock rose during the quarter as it reported strong earnings on the back of its two key growth drivers, AI semiconductors and its acquired VMware software business. The company once again increased its outlook for AI-related revenue, now expecting $11 billion or more this year (versus prior guidance for $10 billion), on the back of strength in both hyperscale custom compute and networking chips, where Broadcom maintains dominating share. In networking, Broadcom’s solutions are critical to enabling AI training factories to scale towards 100,000 chip clusters in the near term and 1 million chip clusters over the coming years. In AI custom compute, Broadcom designs custom accelerators for large consumer- internet AI companies (such as Google and Meta), who are building increasingly large AI clusters to drive improvements in user engagement and targeted advertising on their consumer media platforms. VMware remains on track to continue rapid sequential growth while simultaneously reducing operating expenses, driving faster-than-expected margin expansion and accretion, as management has simplified the product offering and is converting customers from a license model to subscriptions. We believe VMware will grow beyond the $4 billion near-term quarterly target, well above current analyst expectations. These two factors combined have caused a re-rating to the growth profile for the overall company. To quote CEO Hock Tan, “there is only one Broadcom. Period.”\n\nOverall AVGO ranks 30th on our list of stocks with the highest consensus ROE according to Goldman Sachs. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.\nREAD NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.\nDisclosure: None. This article was originally published on Insider Monkey.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.0","shortVersion":"4.29.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2476776767"}