This morning, Apple (AAPL) and Broadcom (AVGO) announced a multibillion-dollar deal between the two companies. Apple will rely on Broadcom to produce its 5G radio frequency components right here in the US.
In 2021, Apple announced its intention to invest $430 billion in the U.S. economy, amidst backlash of overseas production. CEO Tim Cook says this deal represents a part of that plan. Further, he expressed his excitement to “harness the ingenuity, creativity, and innovative spirit of American manufacturing”.
This isn’t going to be the first time the two companies have worked together. In 2020, Broadcom sold $15 billion in wireless components to Apple. As of now, more than 1,000 Broadcom jobs can be attributed to Apple production in their Fort Collins, Colorado facility.
The specific components that Broadcom is going to produce include FBAR filters and other wireless connectivity components. And as a result of this news, the stock has jumped nearly 3%. This comes as the company has been on the uptrend for some time.
After climbing 7.6% in the past week, 9.8% in the last month, 18% in the last 3 months, and 33% in the last year, AVGO shows no signs of slowing down. And, we’ve taken a look at the stock through the VectorVest stock analyzing system and uncovered 3 reasons potential investors should be interested in adding the company to their portfolio.
AVGO Has Excellent Upside Potential With Very Good Safety & Timing
The VectorVest system is a game-changer for new and seasoned traders alike. It simplifies your strategy by telling you exactly what to buy, when to buy it, and when to sell it. Wouldn’t it be nice to win more trades with less work?
Through this proprietary stock rating system, you can. You’re given all the insights you need to feel confident executing trades in just 3 simple ratings. These are relative value (RV), relative safety (RS), and relative timing (RT).
Each of these ratings sits on its own scale of 0.00-2.00, with 1.00 being the average. Based on the overall VST rating for a given stock, the system issues a clear buy, sell, or hold recommendation - at any given time. As for AVGO, here’s what we’ve discovered:
- Excellent Upside Potential: The RV rating is an indicator of a stock’s long-term price appreciation potential. It compares a 3-year price projection to AAA corporate bond rates and risk. And right now, AVGO has an excellent RV rating of 1.50. Moreover, the stock is currently undervalued. Its current value is $849.
- Very Good Safety: In terms of risk, AVGO has very good safety - with an RS rating of 1.35 to back it up. This is derived through a deep analysis of the company’s financial consistency & predictability, debt-to-equity ratio, and business longevity.
- Very good Timing: As you can see by looking at the stock’s chart through any timeframe, AVGO has been climbing higher and higher for a while. As a result, the stock has earned a very good RT rating of 1.25. This is based on the direction, dynamics, and magnitude of the stock’s price movement day over day, week over week, quarter over quarter, and year over year.
The overall VST rating of 1.36 is very good. So, does that mean you should buy AVGO now? Get a clear answer on your next move with a free stock analysis at VectorVest. Trust us - you’re not going to want to miss out on this opportunity!
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VectorVest advocates buying safe, undervalued stocks, rising in price. AVGO has excellent upside potential, very good safety, and very good timing - especially after solidifying the current price trend through the Apple deal.
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