Broadcom Beats Earnings – Here’s the Trade Now

Christel Deskins

Up more than 3% on the day, Broadcom  (AVGO) – Get Report is one of the few positives in the tech space on Friday. At its lows, the Nasdaq was down more than 5% on Friday. That follows the 4.9% dip in the prior session. Bulls who had been lulled by […]

Up more than 3% on the day, Broadcom  (AVGO) – Get Report is one of the few positives in the tech space on Friday.

At its lows, the Nasdaq was down more than 5% on Friday. That follows the 4.9% dip in the prior session. Bulls who had been lulled by the easygoing rise in the Nasdaq this summer were dealt a swift 10% two-day decline.

Impressively though, Broadcom has found a way to buck the trend.

The company reported a top- and bottom-line beat on Thursday evening, while also declaring another $3.25 quarterly dividend. That gives the stock a yield of roughly 3.7%, making it attractive vs. Treasury bonds and other fixed income offerings.

Broadcom saw its free cash flow climb 33% to a new record, while shaving almost $2 billion off its debt load. Finally, management provided above-consensus guidance for the fourth quarter.

Let’s look at the stock, which is deservedly higher after the print.

Broadcom is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AVGO? Learn more now.

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