We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
As Shares Approach $1,000, Should You Buy Alphabet (GOOGL)?
Read MoreHide Full Article
The race to $1,000 per share is over, and Amazon (AMZN - Free Report) has won. The e-commerce king briefly touched the quadruple digit threshold early Tuesday morning, and while Alphabet (GOOGL - Free Report) also inched higher, it fell short at an intraday high of $997.62.
Of course, this isn’t the end of the world for Alphabet. In fact, the stock seems poised to hit $1,000 soon, and the company seems to be on the cusp of several new growth opportunities that could drive share prices even higher than that.
Investors should note that Alphabet is currently a Zacks Rank #1 (Strong Buy). This is thanks to the encouraging earnings estimate revision activity we have seen recently. Indeed, there have been nine positive revisions to Alphabet’s full-year earnings estimates over the past 60 days.
And while we know that the Zacks Rank is typically a short-term indicator, it should also be mentioned that we have seen eight positive revisions to Alphabet’s next-year earnings estimates within this same 60-day timeframe.
Growth-minded investors will immediately notice that Alphabet is still posting impressive year-over-year results, especially considering the existing size of the company. Our current consensus estimates call for solid growth this year, and that should continue into the next fiscal year as well. The latest figures would represent EPS growth of 18.40% and revenue growth of 16.41% in fiscal 2018.
Right now, we are seeing a very efficient Alphabet. About two years ago, Google hired former Morgan Stanley exec Ruth Porat as its new CFO. Under Porat, the company reigned in its spending and underwent the Alphabet restructuring—a move that was supposed to be help deliver more value to shareholders. So far, it seems like that experiment is working.
In the long term, Alphabet should be positioned to lead in several emerging markets, including artificial intelligence, autonomous driving, and fiber networks. While the company may have cut some spending, it will start to see the benefits of years of R&D spending in these fields soon.
Google as an entity has faced pressure from some changing consumer trends, including a shift away from its traditional search services. Nevertheless, the company has adapted, and now Alphabet seems poised to maintain its status as internet king for many years to come.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade, which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
As Shares Approach $1,000, Should You Buy Alphabet (GOOGL)?
The race to $1,000 per share is over, and Amazon (AMZN - Free Report) has won. The e-commerce king briefly touched the quadruple digit threshold early Tuesday morning, and while Alphabet (GOOGL - Free Report) also inched higher, it fell short at an intraday high of $997.62.
Of course, this isn’t the end of the world for Alphabet. In fact, the stock seems poised to hit $1,000 soon, and the company seems to be on the cusp of several new growth opportunities that could drive share prices even higher than that.
Investors should note that Alphabet is currently a Zacks Rank #1 (Strong Buy). This is thanks to the encouraging earnings estimate revision activity we have seen recently. Indeed, there have been nine positive revisions to Alphabet’s full-year earnings estimates over the past 60 days.
And while we know that the Zacks Rank is typically a short-term indicator, it should also be mentioned that we have seen eight positive revisions to Alphabet’s next-year earnings estimates within this same 60-day timeframe.
Growth-minded investors will immediately notice that Alphabet is still posting impressive year-over-year results, especially considering the existing size of the company. Our current consensus estimates call for solid growth this year, and that should continue into the next fiscal year as well. The latest figures would represent EPS growth of 18.40% and revenue growth of 16.41% in fiscal 2018.
Right now, we are seeing a very efficient Alphabet. About two years ago, Google hired former Morgan Stanley exec Ruth Porat as its new CFO. Under Porat, the company reigned in its spending and underwent the Alphabet restructuring—a move that was supposed to be help deliver more value to shareholders. So far, it seems like that experiment is working.
In the long term, Alphabet should be positioned to lead in several emerging markets, including artificial intelligence, autonomous driving, and fiber networks. While the company may have cut some spending, it will start to see the benefits of years of R&D spending in these fields soon.
Google as an entity has faced pressure from some changing consumer trends, including a shift away from its traditional search services. Nevertheless, the company has adapted, and now Alphabet seems poised to maintain its status as internet king for many years to come.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade, which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>