AVGO - Broadcom Stock: Time To Take Some Profit
2024-05-03 10:29:42 ET
Summary
- Broadcom Inc. is currently priced for perfection, leading little margin of safety.
- For investors truly committed to the long term, there is plenty to like, such as its focus on enterprise infrastructure, strategic M&A, and AI potential.
- However, in the near term, the market's expectations for its EPS growth are overly optimistic in my view.
AVGO stock: high P/E and high EPS growth expectations
My thesis for this article is that Broadcom Inc. ( AVGO ) stock is currently priced for perfection. As a result, I rate the stock as a HOLD. I think it is prudent for existing investors to take some profit (unless you are truly committed to the long term) and for potential investors to stay on the sideline for now....
Broadcom Stock: Time To Take Some Profit