Analysts remain strongly bullish on Broadcom stock, with 22 of 26 having a rating of Buy or Strong Buy. The other four rate the shares at Hold. At a recent price of around $506.40 a share, the potential upside based on a median price target of $675.00 is 33.3%. Based on a high price target of $780.00, the upside potential is nearly 133%.
For Broadcom’s third quarter of fiscal 2022, analysts are looking for revenue of $8.41 billion, which would be up 3.8% sequentially and 24.0% higher year over year. Adjusted EPS are forecast at $9.55, up 5.3% sequentially and by 37.2% year over year. For the full fiscal year, estimates call for EPS of $36.90, up 31.8%, on sales of $32.93 billion, up 20%.
Broadcom trades at 13.7 times expected 2022 EPS, 12.6 times estimated 2023 earnings of $40.11 and 12.0 times estimated 2024 earnings of $42.16 per share. The stock’s 52-week range is $463.91 to $677.76. Broadcom pays an annual dividend of $16.40 (yield of 3.24%). Total shareholder return for the past year was 4.5%.
Lululemon
Lululemon Athletica Inc. (NASDAQ: LULU) has posted a share price decline of about 26% over the past 12 months. Since posting a 52-week high in mid-November, the shares have declined by about 36%. Since posting a 52-week low in early July, the shares are up 16.6%, primarily due to macroeconomic factors. Like other consumer cyclicals, though, investors have been wary since Chair Jerome Powell’s remarks last week on how the Federal Reserve plans to battle inflation and a potential recession.
Of 30 brokerages covering the company, 19 have a Buy or Strong Buy rating and nine more have Hold ratings. At a share price of around $307.10, the upside potential based on a median price target of $376.50 is 22.6%. At the high price target of $512.00, the upside potential is 66.7%.
Second-quarter fiscal 2023 revenue is forecast at $1.77 billion, up 9.6% sequentially and by 22.1% year over year. Adjusted EPS are forecast at $1.85, up 25.3% sequentially and by 12.1% year over year. For the full fiscal year ending in January, analysts expect Lululemon to report EPS of $9.43, up 21.1%, on sales of $7.69 billion, up 22.9%.
Lululemon stock trades at 32.5 times expected 2023 EPS, 27.8 times estimated 2024 earnings of $11.05 and 23.7 times estimated 2025 earnings of $12.96 per share. The stock’s 52-week range is $251.51 to $485.82. The company does not pay a dividend. Total shareholder return for the past year is negative 25.9%.
Originally posted at 24/7 Wall St.
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