A resistance line has formed in the chart of Broadcom Inc. (NASDAQ:AVGO) over the past couple of months. If the stock breaks through this level, it could be headed for a breakout. Read more to learn how to profit from this trade,.Broadcom Inc. (AVGO), the combined entity of Broadcom and Avago, boasts a highly diverse product portfolio across an array of end markets. Avago focused primarily on radio frequency filters and amplifiers, while the Broadcom unit designs, develops, and supplies semiconductor and infrastructure software solutions.
The company has been gaining on continued strength in both its Semiconductor solutions and Infrastructure software segment. In particular, AVGO is seeing robust adoption of Wi-Fi 6 in access gateway and cable DOCSIS 3.1 products. The acceleration in 5G deployment and a production ramp up in radio frequency (RF) should drive growth going forward.
AVGO had $9.5 billion in cash as of the most recent reported quarter, compared with only $278 million. The company also has a gross margin of 59%, which is above the industry average. From a growth standpoint, sales have grown an average of 23.5% over the past five years. Plus, analysts forecast a 26.9% year over year rise in earnings in the current quarter.