3 Top Stocks to Double Up on Right Now -- Including Broadcom (AVGO) Stock

If you're in the market for some new stocks for your portfolio, you might be tempted to chase some high-flying growth stocks. That could work out well for you, but if the market suffers a setback, as it invariably does now and then, many overvalued growth stocks will tend to fall hardest.

So focus instead on stocks with more reasonable valuations. Here are a few to consider.

Image source: Getty Images.

1. Broadcom

Broadcom (AVGO 0.31%), a semiconductor giant with a recent market value of $1.9 trillion, certainly qualifies as a growth stock, as it has delivered average annual gains of 36% over the past 15 years. It's up 36% over the last year, but it still looks relatively undervalued or fairly valued, with a recent forward-looking price-to-earnings (P/E) ratio of 19.8, a bit below the five-year average of 20.7. (Its price-to-sales ratio of 24 is very much on the steep side, though.)

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NASDAQ: AVGO

Broadcom

Today's Change

(-0.31%) $-1.25

Current Price

$399.87

Key Data Points

Market Cap

$1.9TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$395.78 - $402.30

52wk Range

$269.58 - $495.00

Volume

388.4K

Avg Vol

26.4M

Gross Margin

65.66%

Dividend Yield

0.64%

That latter measure is a lofty valuation, but it can be justified by rapid growth. In the company's second quarter, reported in early June, revenue popped by 48% year over year, with net income rising more than 50%. More impressively, its semiconductor revenue from artificial intelligence (AI) surged 143%.

Broadcom is not just another semiconductor company -- it's also a software company, with offerings spanning wireless and wired technologies, cybersecurity, and storage, among other areas.

2. MercadoLibre

If you're worried about a looming pullback in the U.S. stock market, you might want to look abroad for some investments. So consider MercadoLibre (MELI +2.73%). It's a major e-commerce and fintech (financial technology) company serving Latin America and recently boasting 126 million unique buyers and 83 million monthly active users (up 29% year over year as of the first quarter). That quarter also featured revenue up 49% year over year and total payment volume up 50%.

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NASDAQ: MELI

MercadoLibre

Today's Change

(2.73%) $49.38

Current Price

$1,857.21

Key Data Points

Market Cap

$94BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$1812.97 - $1884.00

52wk Range

$1495.00 - $2548.50

Volume

16.5K

Avg Vol

538K

Gross Margin

43.86%

It, too, has been quite a growth stock, averaging annual gains of nearly 29% over the past decade -- though it's down 27% over the past year (as of July 7). Its price-to-sales ratio was recently just 2.9, well below the five-year average of 5.3.

The bull case for MercadoLibre is that e-commerce is still in its early days in Latin America, leaving ample room for growth. The company is also diversified, with a marketplace and its fintech services that serve the underbanked with credit cards and more. MercadoLibre does have competition, but take a closer look at it to see if you think it's worth some of your hard-earned dollars.

3. Micron Technology

Memory chip specialist** Micron Technology** (MU 1.05%) is up 683% over the past year (as of July 7), and it still looks arguably reasonably valued, with a forward P/E ratio of 6.1. Its price-to-sales ratio is much steeper, at 12.43.

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NASDAQ: MU

Micron Technology

Today's Change

(-1.05%) $-10.39

Current Price

$981.25

Key Data Points

Market Cap

$1.1TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$954.13 - $998.00

52wk Range

$103.38 - $1255.00

Volume

859.4K

Avg Vol

51.2M

Gross Margin

72.60%

Dividend Yield

0.05%

The AI surge has driven demand for Micron's offerings, and that doesn't look like it's going to slow down soon. Its third quarter featured revenue up 345% and net income up about 1,400%. CEO Sanjay Mehrotra added: "Micron is investing at record levels in technology, products, and supply to address our customers' rapidly growing demand."

Give Micron a closer look, understanding that it's in a cyclical business and will likely be volatile.