Is Broadcom Stock a Buy?
Broadcom's (NASDAQ: AVGO) stock has tripled over the past five years as the wireless chipmaker once known as Avago aggressively expanded through big acquisitions. Avago gobbled up the original Broadcom in 2016, assumed its name, and acquired the network equipment maker Brocade in 2017.
The new Broadcom expanded into the infrastructure software market by acquiring CA Technologies in 2018 and Symantec's enterprise security business in 2019. It even nearly took out Qualcomm (NASDAQ: QCOM) with a hostile bid before the Trump administration blocked the takeover.
Investors might be reluctant to buy Broadcom after its multiyear rally, but the stock still looks surprisingly cheap at 16 times forward earnings, and it pays an attractive forward yield of 3.3%. Let's dig deeper to see why Broadcom could still have room to run.
Source Fool.com
