The Albatross Around Broadcom Inc. (AVGO) And Zayo Group Holdings, Inc. (ZAYO)

22 analysts out of 31 Wall Street brokerage firms rate Broadcom Inc. (NASDAQ:AVGO) as a Buy, while 0 see it as a Sell. The rest 9 describe it as a Hold. AVGO stock traded higher to an intra-day high of $272.26. At one point in session, its potential discontinued and the price was down to lows at $267.8909. Analysts have set AVGO’s consensus price at $293.23, effectively giving it a 9.33% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $370 (up 37.96% from current price levels). AVGO has a 43.8% ROE, higher than the -5.69% average for the industry. The average ROE for the sector is 13.93%.

It is expected that in Jan 2019 quarter AVGO will have an EPS of $4.32, suggesting a -8.28% growth. For Apr 2019 is projected at $4.17. It means that there could be a -4.79% growth in the quarter. Yearly earnings are expected to rise by -1.27% to about $18.59. As for the coming year, growth will be about 22.27%, lifting earnings to $22.73. RSI after the last trading period was 47.52. AVGO recorded a change of 1.01% over the past week and returned 8.65% over the last three months while the AVGO stock’s monthly performance revealed a shift in price of -4.01%. The year to date (YTD) performance stands at 5.47%, and the bi-yearly performance specified an activity trend of 15.33% while the shares have moved 2.67% for the past 12 months.

Broadcom Inc. (AVGO) currently trades at $268.2, which is lower by -1.11% its previous price. It has a total of 398.08 million outstanding shares, with an ATR of around 5.67. The company’s stock volume rose to 4.19 million, better than 3.2 million that represents its 50-day average. A 5-day increase of about 1.01% in its price means AVGO is now 5.47% higher on year-to-date. The shares have surrendered $43024.8 since its $286.63 52-week high price recorded on 20th of February 2019. Overall, it has seen a growth rate of 2.67 over the last 12 months. The current price per share is $70.74 above the 52 week low of $197.46 set on 12th of July 2018.

Broadcom Inc. (NASDAQ:AVGO)’s EPS was $5.85 as reported for the October quarter. In comparison, the same quarter a year ago had an EPS of $4.59. That means that its growth in general now stands at 27%. Therefore, a prediction of $5.58 given by the analysts brought a positive surprise of 5%. AVGO Oct 19 quarter revenue was $5.45 billion, compared to $4.85 billion recorded in same quarter last year, giving it a 12% growth rate. The company’s $0.6 billion revenue growth that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Zayo Group Holdings, Inc. (NYSE:ZAYO) shares depreciated -1.36% over the last trading period, taking overall 5-day performance up to 2.69%. ZAYO’s price now at $28.25 is greater than the 50-day average of $26.15. Getting the trading period increased to 200 days, the stock price was seen at $30.98 on average. The general public currently hold control of a total of 223.68 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 234.88 million. The company’s management holds a total of 0.4%, while institutional investors hold about 0% of the remaining shares. ZAYO share price finished last trade 8.24% above its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -8.9%, while closing the session with 8.5% distance from 50 day simple moving average.

Zayo Group Holdings, Inc. (ZAYO) shares were last observed trading -28.77% down since July 12, 2018 when the peak of $39.66 was hit. Last month’s price growth of 10.96% puts ZAYO performance for the year now at 23.69%. Consequently, the shares price is trending higher by 39.37%, a 52-week worst price since Dec. 24, 2018. However, it is losing value with -17.85% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $27.73 and $27.99. The immediate resistance area is now $28.68 Williams’s %R (14) for ZAYO moved to 12.9 while the stochastic %K points at 93.23.

ZAYO’s beta is 0.84; meaning investors could reap lower returns, although it also poses lower risks. The company allocated $0.44 per share from its yearly profit to its outstanding shares. Its last reported revenue is $639.1 million, which was -2% versus $653.5 million in the corresponding quarter last year. The EPS for Dec 19 quarter came in at $0.13 compared to $0.12 in the year-ago quarter and had represented 8% year-over-year earnings per share growth. ZAYO’s ROA is 1.3%, lower than the 16.87% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 15.19%.