Broadcom Inc. stock trades under the ticker AVGO & has shown recent bullishness during a volatile market period that traders & investors should take a closer look into.
AVGO stock closed at $603.66/share on 4/4/2022.
Broadcom Inc. AVGO Stock’s Technicals Broken Down
AVGO Stock Price: $603.66
10 Day Moving Average: $578.17
50 Day Moving Average: $592.73
200 Day Moving Average: $551.02
RSI: 54.9
MACD: -5.358
Yesterday, AVGO stock completed a bullish MACD crossover, while also breaking out above its 50 day moving average bullishly.
Their RSI is still neutral at 54, and their recent trading volumes have been above average compared to the rest of the year prior, signaling that they may have more bullish momentum to come in the near-term.
They need to test & break out above the $604.20, $605.54, & $607.64/share resistance levels as they continue climbing higher.
Broadcom Inc. AVGO Stock As A Long-Term Investment
Long-term oriented investors may find AVGO stock’s P/E (ttm) of 31.61 to be appealing, but may balk at their 9.85 P/B (mrq).
They recently reported 15.8% Quarterly Revenue Growth Y-o-Y, with 79.4% Quarterly Earnings Growth.
Investors will want to take a closer look into the details of AVGO stock’s balance sheet, as they have $10.22B in Total Cash (mrq), with $39.5B in Total Debt (mrq).
AVGO stock pays a 2.65% dividend yield, which should be sustainable in the near-term, but may warrant tightening in the long-run as their payout ratio is 84.95%.
83.1% of AVGO stock’s outstanding share float is owned by institutional investors.
Broadcom Inc. AVGO Stock As A Short-Term Trade Using Options
Short-term focused traders can use options to profit from movements in AVGO stock, while hedging against broader market volatility.
I am looking at the contracts with the 5/20 expiration date.
The $597.50, $600 & $602.50 call options look appealing, although they they are somewhat low on open interest (586 total contracts at time of writing).
Given that AVGO has weekly expiration dates, expect to see more liquidity in their options as the expiration date draws nearer.
The $610, $607.50 & $605 puts also look interesting, but have a similar issue with liquidity (507 total contracts at time of writing).
Tying It All Together
AVGO stock has a slightly more bullish near-term outlook than most stocks based on calls:puts at the 5/20 expiration date.
Traders will like their current momentum set up, and should expect to see more open interest in their options contracts as more weekly expiration dates pass.
Investors will like their dividend yield & P/E (ttm), but may think to look into how their debts are structured before making a long-term investment.
Overall, AVGO stock is worth taking a closer look at to see how it fits into your portfolio strategy.
*** I DO NOT OWN SHARES OF AVGO STOCK AT THE TIME OF PUBLISHING THIS PIECE ***