Avago Technologies Led SPY as Its Earnings Beat Estimates



Top stocks

On December 3, the stocks at the top of the SPDR S&P 500 ETF (SPY) were Avago Technologies (AVGO), Avon Products (AVP), and Newmont Mining (NEM). These stocks gained 9.5%, 7.0%, and 4.9%, respectively, on the day. The following graph compares the stock price performances of Avago Technologies (AVGO) and its peer company, Broadcom (BRCM), since October 2015.

Avago Technologies (AVGO) is involved in semiconductors and is a key supplier to Apple (AAPL) and Samsung (SSNLF). Avago’s adjusted EPS (earning per share) for the quarter ended November 1 came in at $2.51, beating the analysts’ estimate of $2.38 per share. Revenue rose 16% at $1.8 billion, surpassing the forecast range of $1.74 billion to $1.79 billion. The quarterly results were outstanding for the company and the stocks are anticipated to trail higher as the semiconductor chip supplier plans to acquire its peer competitor Broadcom (BRCM) in a deal worth $37 billion.

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As of December 3, the trailing-five-day and trailing-one-year returns of AVGO were 12.8% and 52.2%, respectively. In addition, the trading volume of the stock soared to 12,039,266 stocks from the previous day’s volume of 5,436,395 stocks, owing to the release of the company’s quarterly report. The stock traded at $144.8 and well above its moving averages. The 100-day, 50-day, and 20-day moving averages of the stock are $124, $123, and $125, respectively. The analysts’ stock price target set at $171.48 points to an upward growth potential of 18.4% in the stock price of AVGO.

Bottom stocks

Stocks at the bottom of the SPY ETF on December 3 were Chesapeake Energy (CHK), PVH (PVH), and Southwestern Energy (SWN). These stocks yielded -11.8%, -11.1%, and -7.5%, respectively, on the day.

PVH (PVH) landed among the bottom stocks of the SPY as the stock was downgraded by Credit Suisse (CS) from an “outperform” to a “neutral” rating after the company’s third quarterly report was released.

For more on US equities, visit our page on US Equity ETFs.


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