Broadcom saw its IBD SmartSelect Composite Rating jump to 96 Monday, up from 94 the day before.
The new rating shows the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. History shows the top market performers tend to have a 95 or higher score as they launch their major moves.
Broadcom is currently forming a consolidation, with a 677.86 buy point. Look for the stock to break out in heavy trade at least 40% above average.
The RS Line is currently showing a MarketSmith Blue Dot, meaning it is hitting a new high. There may be additional early entry opportunities, but they entail greater risks.
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The stock sports a 94 EPS Rating, which means its recent quarterly and annual earnings growth tops 94% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
The company reported a 34% earnings-per-share gain for Q4. Revenue growth came in at 21%, down from 25% in the prior quarter.
Broadcom earns the No. 2 rank among its peers in the Electronics-Semiconductor Fabless industry group. Lattice Semiconductor is the No. 1-ranked stock within the group.
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