ALPHABET INC-CL C (NASDAQ:GOOG) - A Strong Growth Stock with Reasonable Valuation

ALPHABET INC-CL C (NASDAQ:GOOG) stands out as an affordable growth stock based on our screening criteria. The company combines solid growth prospects with strong profitability and financial health, all while trading at a reasonable valuation.

Growth Prospects

• Past Growth: Over the past year, GOOG's earnings per share (EPS) grew by 29.29%, while revenue increased by 13.07%. The five-year average annual EPS growth stands at 25.25%, demonstrating consistent performance.
• Future Expectations: Analysts project EPS growth of 15.52% and revenue growth of 10.34% annually in the coming years, indicating sustained expansion.

Valuation

• P/E Ratio: At 20.75, GOOG's P/E ratio is below the S&P 500 average of 26.55, suggesting a relatively attractive valuation.
• Forward P/E: The forward P/E of 16.70 is also below the market average, reinforcing the stock’s reasonable pricing.
• PEG Ratio: A low PEG ratio indicates that the stock’s valuation accounts for its expected growth, making it appealing for investors seeking growth at a fair price.

Profitability & Financial Health

• Profit Margins: GOOG boasts a 30.86% profit margin, outperforming 92.96% of its industry peers. Its operating margin of 33.15% is also among the best in the sector.
• Return Metrics: The company delivers strong returns, with a 32.15% return on equity (ROE) and 26.71% return on invested capital (ROIC).
• Financial Stability: With minimal debt (Debt/Equity of 0.04) and a high Altman-Z score of 12.32, GOOG maintains a robust financial position.

For a deeper look at the company’s fundamentals, review the full analysis of ALPHABET INC-CL C.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.