Broadcom Stock Rallies on High Demand and Strong Fundamentals

One big reason for the healthy ramp in price is steady accumulation in the stock.

Broadcom Shares Attract Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And AVGO has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

Each green bar signals big trading volumes as the stock ramped in price:

Since late November, the shares attracted 8 unusual buy signals. Demand for the stock has been high. Those repeated green bars could mean more upside is ahead.

Now, let’s check out the fundamental action grabbing my attention:

Broadcom Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, AVGO has been growing sales and EPS at a healthy clip. Take a look:

• 1-year sales growth rate (+21%)
• 3-year EPS growth rate (+69.9%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, AVGO has been a top-rated stock multiple times at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

Let’s wrap up.

Broadcom Price Prediction

The AVGO rally could have further to go. Healthy buying in the shares is signaling to take notice. Shares could be positioned for further upside.

Please note, shares could be extended at these levels given the large accumulation signals.

Disclosure: the author holds no positions in AVGO at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/