Yahoo Finance The Zacks Rank Explained: How to Find Strong Buy Computer and Technology Stocks
It doesn't matter if you're a growth, value, income, or momentum-focused investor -- building a successful investment portfolio takes skill, research, and a little bit of luck.
Should You Buy #1 (Strong Buy)-Ranked Alphabet (GOOGL) for Your Portfolio?
Alphabet was upgraded to the Zacks Rank #1 list on April 30, 2024. The Zacks Rank is a unique stock-rating model that helps you take advantage of earnings estimate revision trends and provides a way to get into stocks highly sought after by institutional investors.
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.
16 analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.79 to $7.56 per share. GOOGL also boasts an average earnings surprise of 11.3%.
Earnings are expected to grow 30.3% for the current fiscal year, while revenue is projected to increase 15.2%.
Additionally, GOOGL has climbed higher over the past four weeks, gaining 11.7%. The S&P 500 is up 5% in comparison.
Bottom Line
With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Alphabet could be just the stock to help your portfolio generate returns that could fund your retirement, your kids' college tuition, or your short- and long-term savings goals.
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