I’m putting Broadcom Inc. (AVGO) front and center because it is going to officially step into its “Hot Zone” today — and the historical edge here is something to pay attention to, writes Danielle Shay, editor of Five Star Trader.
This is a core portfolio position for me right now — one of my largest long-term holdings and one of my favorite swing trades heading into earnings. Here’s exactly why I’m bullish:
- Beat estimates eight out of eight times — never missed once
- Pre-earnings 21-day average move: +5.4% ($21.91)
- Pre-earnings eight-day average move: +2.7% ($10.93)
- Post-earnings eight-day average move: +6.4% ($25.82)
- Average earnings gap UP: +11.5% ($46.03)
- Average earnings gap DOWN: just -4%
(Editor’s Note: Danielle is speaking at the 2026 MoneyShow Masters Symposium Las Vegas, scheduled for July 19-22. Click HERE to register.)
Look at the chart and you’ll see the vertical green “Hot Zone” bars where the stock has consistently ripped higher right before the report. We were sitting at $402.54 earlier this week. If the 21-day seasonal average holds, we’re looking at roughly $424 by the time earnings hit in early June. But I also have a higher price target of $450.
If the eight-day average fires off once we’re fully inside the zone, that’s still a fast $10–$11 move in just a few trading days.
