$AVGO Broadcom on its way to fight for support a old Cloud Chart support zones! Potential rebound zone!

 $AVGO Broadcom on its way to fight for support a old Cloud Chart support zones! Potential rebound zone!  AVGO been bearish for a while since losing support at the bottom end of the Cloud! Now getting closer the downside targets!

Next catalyst: Looking closely for high volume support to come back into it at these two Cloud Chart support zones, that will indicate the rebound potential swing trade! 

On the weekly chart there is still significant downside risk towards the Cloud support levels!

StarMine Report: Broadcom (AVGO)

Momentum-driven compounder with premium valuation and limited surprise risk!

1. StarMine Factor Models

🟢 Bullish Signals (Strong, but Not Extreme)

• Price Momentum: 91
  AVGO remains in a strong uptrend, supported by institutional flows rather than short-term speculation.

• Analyst Revisions: 99
  Analysts continue to revise estimates higher. This is the most supportive factor in the current setup and historically a strong driver of returns.

• Smart Holdings: 93
  High-quality institutional ownership remains intact, suggesting confidence in AVGO’s long-term earnings power.

• Short Interest: 93
  Low short positioning reduces downside pressure and supports trend persistence.

• Value Momentum: 71
  Fundamentals are improving, but not fast enough to materially offset valuation expansion.

• Credit Risk – Text Mining: 79
  Forward-looking credit signals remain healthy, implying no balance-sheet stress.

• Combined Alpha Model: 80
  AVGO ranks in the upper tier globally, but not at the extreme end — reflecting strength tempered by valuation.

🔴 Bearish Signals (Clear and Consistent)

• Intrinsic Valuation: 29

• Relative Valuation: 15

• Insider Model: 3

• M&A Target Model: 1

These bearish scores all point to the same conclusion:
👉 AVGO is fully priced, not early-cycle, and not a takeover candidate.

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2. Relative Valuation: Premium Across Every Metric

Trailing 12-Month Valuation (Stretched)

• P/E: 41.5 vs industry 26.6 (Global Rank: 25)

• EV/EBITDA: 32.4 vs 15.4 (Rank: 18)

• EV/Sales: 21.5 vs 5.2 (Rank: 4)

• P/CF: 46.0 vs 22.4 (Rank: 19)

• P/B: 18.6 vs 4.2 (Rank: 5)

AVGO trades at a significant premium to peers, reflecting confidence in its diversified semiconductor and infrastructure software earnings.

Forward Valuation (Some Normalization, Still Expensive)

• Forward P/E: 28.3 vs industry 26.9

• Forward EV/EBITDA: 21.9 vs 17.7

• Forward EV/Sales: 14.0 vs 5.2

• Forward P/CF: 26.5 vs 26.7

• Forward P/B: 12.9 vs 4.3

👉 Valuation improves on forward metrics but remains above industry norms, especially on sales and book value.

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3. Earnings & Estimates: Steady, Low-Volatility Profile

January 2026 Quarter

• Mean EPS: 2.00

• Smart EPS: 2.02

• Predicted EPS Surprise: +1.21%

• Revenue: ~19.3B

FY October 2026

• Mean EPS: 10.09

• Smart EPS: 10.28

• Predicted EPS Surprise: +1.85%

• Revenue: ~98.7B

Estimate changes are modest, indicating:

• High visibility

• Well-understood earnings power

• Limited near-term catalyst risk (positive or negative)

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4. Integrated Interpretation

What StarMine is saying about AVGO:

• Momentum and revisions remain strong

• Institutional ownership is supportive

• Earnings are predictable and resilient

• Valuation already prices in execution and durability

AVGO is behaving like a late-stage compounder rather than a cyclical rebound or valuation rerating candidate.

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🎯 Bottom Line

AVGO is a high-quality momentum compounder trading at a premium valuation.

StarMine suggests:

• Upside is incremental, not explosive

• Returns depend on trend continuation, not earnings surprises

• The biggest risk is multiple compression, not earnings collapse

This is a stock that:

• Works well in stable or risk-on markets

• Underperforms if rates rise or sentiment shifts toward valuation discipline