ALPHABET INC-CL A (NASDAQ:GOOGL) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a promising price pattern, making it worth a closer look.
Strong Growth Fundamentals
- Revenue & Earnings Growth: Over the past year, GOOGL’s revenue grew by 13.07%, while earnings per share (EPS) surged 29.29%. The company maintains a strong five-year average revenue growth of 16.68%.
- Profitability: With a Return on Equity (ROE) of 32.15% and a Profit Margin of 30.86%, GOOGL outperforms most peers in the Interactive Media & Services industry.
- Financial Health: The company has a Debt-to-Equity ratio of just 0.04, indicating minimal leverage, and an Altman-Z score of 12.26, signaling low bankruptcy risk.
Technical Setup Suggests Upside
- Short-Term Trend Positive: The stock has been gaining momentum, trading near the upper end of its recent range ($152.20 - $176.77).
- Consolidation Near Resistance: A breakout above $173.69 could signal further upside, supported by increasing volume and institutional interest.
- Support Levels: Key support lies near $165.46, providing a potential stop-loss level for traders.
Valuation Considerations
- P/E Ratio (20.60): While slightly above the industry average, GOOGL’s growth prospects justify the valuation.
- Forward P/E (16.58): More attractive than the S&P 500 average, suggesting room for appreciation if earnings meet expectations.
Our Strong Growth Stocks with Good Technical Setup screener lists more stocks with similar characteristics.
For a deeper dive, review the full fundamental report and technical analysis.
Disclaimer
This is not investment advice. Always conduct your own research before making financial decisions.
