Good entry point for avgo

The good entry point for Broadcom Inc. (AVGO) depends on your investment horizon and risk tolerance. Here's an analysis based on the latest data: 1. **Fundamental Analysis**: - **Financial Performance**: Broadcom reported a net loss of $1.88 billion and a diluted EPS of $-0.4 as of Q3 2024. However, the company has shown a revenue growth rate of 47.27%. - **Revenue Growth**: The 3-year revenue CAGR is 14.23%, indicating a steady growth trajectory. - **Valuation**: The company's P/E(TTM) is 81.79, P/S is 16.79, and Price to Book is 12.8. These metrics suggest the stock is valued highly relative to its earnings and assets. 2. **Technical Analysis**: - **Trend Analysis**: The stock is currently trading above its 5-Day, 10-Day, and 20-Day moving averages, which could indicate a positive short-term trend. However, it is trading below its 30-Day, 50-Day, and 60-Day moving averages, suggesting a potential for a pullback. - **Moving Averages**: The 120-Day, 200-Day, and 250-Day moving averages are $156.91, $144.62, and $135.25, respectively. These could act as support levels. - **MACD and RSI**: The MACD is -0.79, and the RSI is 53.65, both of which are close to the midpoint and not indicating an overbought or oversold condition. 3. **Market Sentiment**: - **Analyst Ratings**: The consensus rating is a "Strong Buy" with an average price target of $220, which is a significant premium to the current price. - **Institutional Activity**: There have been recent sales by company executives, which could influence the stock's price movements. - **Recent Performance**: The stock has been performing well, with a recent forecast of four-to-six quarters of semiconductor growth. In conclusion, given the positive growth prospects and reasonable technical indicators, a good entry point for AVGO could be around the 200-Day moving average of $156.91, which is close to the current price. This level is supported by the 120-Day, 200-Day, and 250-Day moving averages, and the consensus target suggests upside potential. However, investors should monitor the stock's performance against the 5-Day, 10-Day, and 20-Day moving averages for signs of a trend reversal.