Broadcom Corp. (BRCM) — This global semiconductor maker for wired and wireless communications provides “systems on a chip” (SoC), including chips for the expanding smartphone market. Earnings for 2013 are expected to be $2.96 per share. Credit Suisse estimates earnings of $3.10 for 2014, and their price target is $45.
On May 13, the Trade of the Day said, “In April, Broadcom broke higher from an extended symmetrical triangle — a very bullish sign, especially when accompanied by high volume and a MACD buy signal. The trading target from BRCM is $43, but long-term investors could achieve a much higher return.”
Broadcom reversed from under $38 and has retreated on profit-taking to its 50-day moving average at $35. Both the fundamental and technical pictures are still very strong for this stock. Thus, new positions should be considered between $34 (200-day moving average) and $36.