ALPHABET INC-CL A (NASDAQ:GOOGL) – A Strong Growth Stock with Reasonable Valuation

ALPHABET INC-CL A (NASDAQ:GOOGL) stands out as an attractive option for investors seeking growth at a reasonable price. The company, known for its dominant position in digital advertising, cloud computing, and other tech innovations, demonstrates strong fundamentals across multiple key areas.

Growth Prospects

• Revenue & Earnings Growth: Over the past year, GOOGL’s revenue grew by 13.07%, while earnings per share (EPS) surged 29.29%. The company has maintained an impressive 16.68% average annual revenue growth over recent years.
• Future Expectations: Analysts project continued growth, with EPS expected to rise 15.78% annually and revenue forecasted to increase 10.45% per year.

Valuation

• P/E Ratio: At 21.78, GOOGL’s price-to-earnings ratio is below the S&P 500 average of 27.48, suggesting a reasonable valuation relative to broader market benchmarks.
• Forward P/E: The forward P/E of 17.49 is also lower than the industry average, indicating potential upside.
• PEG Ratio: The low PEG ratio highlights that the stock’s valuation accounts for its expected growth, making it an appealing choice for growth investors.

Profitability & Financial Health

• High Profit Margins: GOOGL boasts a 30.86% profit margin and a 33.15% operating margin, outperforming most peers in the Interactive Media & Services industry.
• Strong Balance Sheet: The company has a solid Altman-Z score of 12.81, indicating low bankruptcy risk, and maintains a manageable debt-to-equity ratio of 0.04.

While GOOGL does not offer a high dividend yield, its focus on reinvesting profits supports long-term growth.

For a deeper look at the company’s financials, review the full fundamental analysis report.

Our Affordable Growth screener provides more stocks with similar growth and valuation characteristics.

Disclaimer

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