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 strong growth potential with solid profitability and financial health, all while maintaining a reasonable valuation.

Growth Prospects

• Past Growth: GOOG has demonstrated impressive growth, with Earnings Per Share (EPS) increasing by 29.29% over the past year and averaging 25.25% growth in recent years. Revenue has also expanded by 13.07% annually.
• Future Expectations: Analysts project continued growth, with EPS expected to rise by 15.78% and revenue by 10.45% annually in the coming years.

Valuation Assessment

• P/E Ratio: At 21.42, GOOG’s P/E ratio is below the industry average of 27.90 and the S&P 500 average of 27.45, suggesting a reasonable valuation.
• Forward P/E: The forward P/E of 17.22 indicates a more attractive valuation compared to both the broader market and industry peers.
• PEG Ratio: The low PEG ratio, which accounts for growth, reinforces the stock’s appeal as reasonably priced relative to its earnings expansion.

Profitability & Financial Health

• Profitability: GOOG earns a high 9/10 rating in this category, with strong margins—30.86% profit margin and 33.15% operating margin—placing it among the top performers in its industry.
• Financial Health: With an 8/10 health rating, the company maintains a solid balance sheet, low debt levels, and strong cash flow generation.

For a deeper look at GOOG’s fundamentals, review the full analysis report.

Our Affordable Growth screener provides more stocks that fit this investment approach.

Disclaimer

This is not investment advice. Always conduct your own research before making financial decisions.