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Valued at around $1.35 trillion, Broadcom Inc. (AVGO) is a premier designer, developer, and global supplier of a broad range of semiconductor devices. Since the Trend Seeker tool signaled a buy on May 1, the stock has gained 54%, notes Jim Van Meerten, analyst at Barchart.

I identified Broadcom by sorting for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and the Trend Seeker signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. Broadcom checks those boxes.

Broadcom Price vs. Daily Moving Averages

What else do I like? Broadcom shares hit a new all-time high on July 31, touching $306.95. Broadcom has a 100% technical “Buy” signal, a Weighted Alpha of +98.4, and it has been trading above its 20-, 50- and 100-day moving averages. The Relative Strength Index is at 71.5%, and Broadcom has technical support at $297.86.

Revenue is projected to grow 21.9% this year and another 20.5% next year. Earnings are estimated to increase 36.8% this year and an additional 23.6% next year. Plus, the Wall Street analysts tracked by Barchart have issued 33 “Strong Buy,” one “Moderate Buy,” and only three “Hold” opinions on the stock.

Bottom line: Broadcom has momentum and has been hitting new highs. It has positive sentiment from Wall Street, plus analysts project double-digit increases in revenue and earnings.

About the Author

Jim Van Meerten earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and attended post-baccalaureate and graduate courses in Business Administration, Quantitative Math, and Education at Florida Atlantic University, Georgia State University and University of North Carolina at Charlotte.

Previously he has been an accountant, attorney, adjunct professor in Business Law, Accounting and Internal Auditing, financial advisor, supervisory principal, and compliance officer. He also passed the Georgia CPA Exam, the Certified Internal Auditor Exam, and the FINRA Series 7, 24 and 9/10 exams.

He is presently an analyst at Barchart and writes "Chart of the Day," an article sent out daily that utilizes the tools available on Barchart.com, including screeners, Barchart technical indicators, and trading signals, to find stocks with compelling setups.

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