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【how to get a loan for 97000】Here is Why Growth Investors Should Buy Broadcom Inc. (AVGO) Now

来源:can you swim with floc in the pool 编辑:Leisure 时间:2024-10-06 14:42:51

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However,how to get a loan for 97000 it isn't easy to find a great growth stock.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

【how to get a loan for 97000】Here is Why Growth Investors Should Buy Broadcom Inc. (AVGO) Now


However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

【how to get a loan for 97000】Here is Why Growth Investors Should Buy Broadcom Inc. (AVGO) Now


Broadcom Inc. (AVGO) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

【how to get a loan for 97000】Here is Why Growth Investors Should Buy Broadcom Inc. (AVGO) Now


Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.


Here are three of the most important factors that make the stock of this chipmaker a great growth pick right now.


Earnings Growth


Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.


While the historical EPS growth rate for Broadcom Inc. is 18.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 18.4% this year, crushing the industry average, which calls for EPS growth of 16.8%.


Cash Flow Growth


Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.


Right now, year-over-year cash flow growth for Broadcom Inc. is 13.5%, which is higher than many of its peers. In fact, the rate compares to the industry average of -0.9%.


While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 35.3% over the past 3-5 years versus the industry average of 9.6%.


Story continues


Promising Earnings Estimate Revisions


Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.


The current-year earnings estimates for Broadcom Inc. have been revising upward. The Zacks Consensus Estimate for the current year has surged 5.2% over the past month.


Bottom Line


While the overall earnings estimate revisions have made Broadcom Inc. a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.


You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.


This combination positions Broadcom Inc. well for outperformance, so growth investors may want to bet on it.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.


Click to get this free report


Broadcom Inc. (AVGO) : Free Stock Analysis Report


To read this article on Zacks.com click here.


Zacks Investment Research


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