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.

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1. Broadcom

Broadcom (NASDAQ: AVGO), 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.)

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 (NASDAQ: MELI). 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%.

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 (NASDAQ: MU) 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.

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.

Selena Maranjian has positions in Broadcom, MercadoLibre, and Micron Technology. The Motley Fool has positions in and recommends Broadcom, MercadoLibre, and Micron Technology. The Motley Fool has a disclosure policy.