Value
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 1.8 |
| P/S | 0.0 |
| EV/EBITDA | 0.0 |
| Fwd P/E | 6.4 |
| PEG | 7.7 |
| Analyst target | 7.5 |
- ▸Forward P/E: 20.0x
- ▸PEG: 0.88
AVGO · Why this verdict
Why Broadcom (AVGO) is rated BUY WAIT
Updated
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VerdictBUY WAIT
Overall score6.7/10
ConfidenceMEDIUM
MacroRISK_OFF
Per-dimension breakdown
Quality
9.0/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 10.0 |
| ROA | 8.1 |
| Gross margin | 10.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Current ratio | 7.7 |
| FCF quality | 6.6 |
| Moat | 8.2 |
| Rule of 40 | 9.5 |
| Piotroski F | 10.0 |
- ▸Excellent ROE: 37%
- ▸Strong margins: 39%
- ▸Wide economic moat
- ▸Compounder quality: strong returns + growth
Growth
10.0/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 10.0 |
| EPS growth | 10.0 |
- ▸Strong growth: 48% YoY
Momentum
4.3/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 7.5 |
| MACD | 0.0 |
| OBV | 1.0 |
| MA position | 4.0 |
| Volume | 9.1 |
- ▸Uptrend pullback (RSI 40) - buy opportunity
- ▸Volume distribution (falling OBV)
- ▸Above 200-day MA
Sentiment
7.6/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 5.0 |
| Analyst rating | 9.0 |
| Price target | 8.8 |
- ▸Analyst upside: 33%
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.1 |
- ▸Insider selling (low materiality) — $356,425,614 (0.020% of mkt cap)
Peer rank
5.0/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 3.3 |
| quality rank | 9.1 |
| growth rank | 7.7 |
- ▸Superior ROE vs peers
- ▸Best-in-class margins
Technical
7.8/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 9.7 |
| support resistance | 10.0 |
| 52w position | 5.6 |
| gap | 6.0 |
Risk (lower is worse)
5.4/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 9.4 |
| days to cover | 8.1 |
| volatility | 0.0 |
| put call | 5.2 |
| implied vol | 1.3 |
| max pain risk | 7.0 |
| beta | 5.3 |
| debt equity | 6.6 |
- ▸High IV: 72%
- ▸Concentration risks: 1 HIGH, 2 MED (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
6.1/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 3.6 |
| dividend safety | 4.8 |
| news activity | 8.0 |
- ▸Perfect beat streak: 4Q
- ▸Yield trap warning: high yield but unsafe
How the verdict was assembled
Engine trigger
Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 0.88, quality 9.0/10, growth 10.0/10).
Engine technical detail
verdict_path:
L4:PATH_C2_GARP_WAIT|ENTRY_STICKY:WITHIN_BANDPassed (6)
- ASYMMETRY:1.9>=1.5
- INSIDER:OK
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:88d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- MOMENTUM:4.3<4.5
Warning (1)
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
1.88
Upside
+22.3%
Downside
11.9%
Sizing output
STARTER
SetupUNKNOWN — No clear chart pattern; technical signals are mixed
EdgeNO_EDGE — No clear edge identified
SuitabilityAGGRESSIVE — Beta 1.43>1.3
Investment implication
The C-path quality+growth combination triggered the STRONG_BUY_WAIT verdict: quality 9.0 and growth 10.0 both clear their thresholds, with asymmetric R:R of 1.88 supporting the read.
The strongest dimensions are Growth at 10.0, Quality at 9.0, and Technical at 7.8; the weakest are Momentum at 4.3, Value at 4.6, and Peer rank at 5.0. The V9 engine flagged 1 failed gate with 1 warning, producing an asymmetric reward-to-risk of 1.88 and an engine sizing output of STARTER.