Pullback Offers Prime Buying Opportunity for This Chip Stock

by Sam Collins | June 6, 2013 1:21 am

Broadcom Corp. (BRCM[1]) — 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[2] 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.

BRCM Chart
Click to Enlarge

Chart Key[3]

  1. BRCM: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRCM
  2. Trade of the Day: https://investorplace.com/2013/05/trade-of-the-day-broadcom-nasdaq-brcm/
  3. [Image]: https://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: https://investorplace.com/2013/06/trade-of-the-day-broadcom-corp-brcm/
Short URL: http://invstplc.com/1fxP9op