For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Different than value or momentum investors, growth-oriented investors are concerned with a stock’s future prospects, and the overall financial health and strength of a company. Thus, they’ll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Alphabet is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily being a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare providers and others. In the online search arena, Google has a monopoly with more than 94% of the online search volume and market. Over the years, the company has witnessed increase in search queries, resulting from ongoing growth in user adoption and usage, primarily on mobile devices, continued growth in advertiser activity, and improvements in ad formats.
GOOGL sits at a Zacks Rank #2 (Buy), holds a Growth Style Score of B, and has a VGM Score of B. Earnings and sales are forecasted to increase 37.9% and 14.8% year-over-year, respectively.
16 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.37 to $8 per share for 2024. GOOGL boasts an average earnings surprise of 11.8%.
Looking at cash flow, Alphabet is expected to report cash flow growth of 16.7% this year; GOOGL has generated cash flow growth of 15.1% over the past three to five years.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, GOOGL should be on investors’ short lists.
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
Alphabet Inc. (GOOGL) : Free Stock Analysis Report