3 Reasons Why Growth Investors Shouldn't Overlook Broadcom Inc. (AVGO)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Broadcom Inc. identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - Broadcom Inc. has a historical EPS growth rate of 21.8%, with projected EPS growth of 36.3% for the current year, significantly outperforming the industry average of 7.5% [4]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 36.1%, which is notably higher than the industry average of -4.3% [5]. - Over the past 3-5 years, Broadcom's annualized cash flow growth rate has been 15.7%, compared to the industry average of 9.2% [6]. Group 3: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for Broadcom Inc., with the Zacks Consensus Estimate increasing by 0.2% over the past month [8]. - The positive trend in earnings estimate revisions correlates strongly with near-term stock price movements, indicating favorable conditions for the stock [7]. Group 4: Overall Assessment - Broadcom Inc. holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [9][10].