Broadcom (AVGO) a favourite stock for the last 5 years, has been rising during that period almost remorselessly from around $70 to $320. This is a world leader in semi conductors, itself one of the top ranked sectors. With a P/E of 21 and a dividend yield of 3.9% at my last purchase price ($275 on March 1 2019) it has operating margins around 26%. All bar one Yahoo analysts rate it a “strong buy” or “buy”, Zachs is the exception rating it a”Hold”. IBD gives it 98B.
Broadcom is a strong generator of positive cash and moving rapidly into fast growing and high margin software and IP licensing. Management continues to beat the market seamlessly assimilating new M&A targets.
The current price ($320) is an all time high. I would suggest waiting for the next Quarter (June 5?) before buying the stock.
All the best, James.
James is an advisor to the King Group Wealth Management Team of Merrill Lynch.