Buy GE or AVGO?

General Electric (GE) appears to be the stronger buy compared to Broadcom (AVGO) based on the following analysis:

1. Analyst Ratings and Price Targets: Both GE and AVGO have a "Strong Buy" consensus rating from analysts. However, the average price target for GE is $214.33, which is a 16.4% premium over its current price, indicating potential for significant appreciation. In contrast, the average price target for AVGO is $204.55, which is a 11.1% premium over its current price. While both stocks have strong buy ratings, GE's price target suggests a more substantial upside potential.

2. Financial Performance and Growth Metrics: GE's net profit margin is 16.77%, compared to AVGO's 4.19%. This indicates that GE is more profitable relative to its revenue. Additionally, GE's revenue grew by 5.81% year-over-year, while AVGO's revenue growth rate is 47.27%. Although AVGO has a higher revenue growth rate, GE's existing profitability could be a sign of better financial health and stability.

AVGO, GE Total Revenue, Net Profit Margin

3. Technical Indicators: Both stocks are trading near their respective support and resistance levels. GE is trading at $184.81, close to its support level of $179.45 and its resistance level of $186.42. AVGO is trading at $183.64, close to its support level of $181.83 and its resistance level of $185.05. The proximity to support levels suggests a potential for price upward movement if market sentiment turns favorable.

AVGO, GE Closing Price

4. Moving Averages: The 5-day moving average for GE is $178.29, the 10-day is $175.9, and the 50-day is $180.78. For AVGO, the 5-day moving average is $177.89, the 10-day is $175.6, and the 50-day is $170.75. The fact that all moving averages for both stocks are above the current trading prices suggests a potential for a price correction downward unless market sentiment or fundamentals change.

5. Valuation Metrics: GE's P/E ratio is 32.02, P/S ratio is 3.23, and Price to Book Ratio is 10.6. AVGO's P/E ratio is 168.34, P/S ratio is 18.32, and Price to Book Ratio is 13.06. GE's lower P/E and P/S ratios, along with a higher Price to Book Ratio, could indicate that it is undervalued compared to AVGO, which has higher ratios across these metrics.

AVGO, GE P/E(TTM), P/S...

In conclusion, while both stocks have their strengths, GE's higher analyst price target, better net profit margin, and potentially undervalued metrics compared to AVGO make it the more attractive buy at this time. However, investors should consider their risk tolerance and investment horizon, as AVGO's high revenue growth rate could offer potential for long-term gains.