Is Now the Time to Buy Alphabet Inc. (NASDAQ:GOOGL)? Analysts Take Aim

Traders may be using technical analysis to help spot ideal entry and exit points. One idea behind technical analysis is that historical price movement trends have the ability to repeat themselves. Technical analysis involves the use of chart patterns to examine market movements and to help define trends. Trends in the stock market are not always easy to spot. Many chartists will strive to determine whether the trend is up, down, or sideways. After defining a trend, the technical analyst may look to see what type of timeframe the trend encompasses. Some traders will look to identify whether the trend is major or long-term, short-term, or intermediate. Being able to decipher what the data is saying may assist the trader with finding potential entry and exit points on a particular trade. There are many different indicators that can be employed when undertaking technical analysis. Many traders will do numerous chart studies to find out which indicator or indicators tend to project the most relevant trading assistance. Learning how to spot these trends might help the trader develop specific charting skills that will hopefully lead to future market success.

Individuals may have the tendency to make irrational investing decisions based on certain biases rather than focusing on market fundamentals. They might purchase a certain stock when the price is surging higher or when the entire stock market is in an upswing. This behavior is typically driven by the fear of missing out on possible profits that they think that everybody else is making. When the market continues to rise, they may believe that they need to get in quick before missing out completely. On the other side, investors may be too quick to sell a certain stock when it is been moving to the downside. They may be scared of further losses and the fear of uncertainty may creep in and cause unnecessary selling. 

Alphabet Inc. (NASDAQ:GOOGL), of the Technology sector recently touched $1222.73 based on a recent trade, indicating movement of 1.09%. Analysts are predicting earnings per share growth of 45.90% for the current year. The earnings per share growth over the next five years are expected to be 17.60%. Alphabet Inc. has had earnings per share growth of 19.60% over the past five years. 

Currently the return on equity is 18.30% and its debt to equity is 0.00. Alphabet Inc. has a total market cap of $854064.66, a gross margin of 56.50% while the profit margin is 22.50% and the ROI is 12.20%.


The stats on Alphabet Inc. (NASDAQ:GOOGL) are currently as follows. The weekly performance is 0.93%, and the quarterly performance is at 14.87%. The monthly performance is 2.53% and the yearly performance is 2.53%. The performance for Year to Date (YTD) is 17.01%.

Alphabet Inc. has posted a trailing 12 months earnings per share of $43.70 and the earnings per share growth for this year is expected to be 45.90%. The ROI is 12.20% and the return on equity for Alphabet Inc. stated earlier, is currently at 18.30% .The return on assets (ROA) for Alphabet Inc. is 14.10%. 

Earnings per share (EPS) the amount of income that “belongs” to each share of common stock. This is a valuable tool that investors use to determine the value and projected value of a stock.  Earnings per share is generally reported in annualized form from the most recent fiscal year. To determine the value, the average number of shares outstanding is usually calculated by averaging the number of shares at the beginning of the fiscal period and the number of shares at the end of the period. 

Price Earnings Ratio

The price/earnings ratio (P/E) for Alphabet Inc. is 27.98 and the forward P/E ratio stands at 22.37. The price to sales growth is 6.24. The price/earnings ratio (P/E) is a market prospect ratio which calculates the value of a stock relative to its earnings. On other words, the P/E ratio is and indicator of what investors are will to pay for a stock relative to its earnings.  A firm with a high P/E ratio typically indicates that investors are willing to pay a premium for the stock and higher performance in future quarters would be anticipated. Going a step further we can also look at the PEG ratio of a company.  A stock’s price/earnings ratio divided by its year-over-year earnings growth rate. In general, the lower the PEG, the better the value, because the investor would be paying less for each unit of earnings growth.


The technical stats for Alphabet Inc. are as follows. Alphabet Inc. (NASDAQ:GOOGL) is trading 25.07% away from the stock’s 52-week low and -5.32% off of the 52-week high. Current levels place the company 1.73% away from it’s 20-day simple moving average. The average volume stands around 1179194. Trading volume is a hugely important consideration for any investor.  By watching how many shares are trading hands and looking for any changes in that activity, trading opportunities can be spotted along with a deeper understanding of the reliability of other indicators on the stock.  A significant increase in trading volume means that more than double the average amount of stocks are moving.  When volume is decreased significantly, it may indicate there is an issue that shareholders should watch out for.  It’s also important to take into consideration how long the unusual volume sustains for.  If it’s only the one trading day, it can be dismissed as an anomaly.

The current stock levels place it 6.96% away from the 200 day moving average. Alphabet Inc. has a beta of 1.06 and the weekly and monthly volatility stands at 0.73% and 1.34% respectively. The simple moving average is the most common method used to calculate the moving average of prices.  It takes the sum of all of the past closing prices over a specific time period and divides the result by the number of prices used in the calculation.  Increasing the number of time periods in the calculation is an effective way to ascertain the strength of the long-term trend and/or the likelihood that it might reverse.  Some argue that this type of average is not necessarily useful because each data point in the series has the exact same impact on the result no matter where it occurs in the sequence.

Dedicated investors are usually on the lookout for promising stocks that have been overlooked by the investment community. They may be searching for companies that have slipped under the radar and are primed for a move higher. Some investors may do the research and locate these stocks that are infrequently in the financial news headlines and are relatively unknown by the average investor. These stocks may be smaller cap, trading on a foreign exchange, or stocks that used to be prominent that have not been part of the conversation recently. Finding these stocks may take some extra research and effort. Investors who are able to do enough digging may be able to find some great names to help support the stock portfolio.

Beta is used to measure a stock’s price volatility relative to the market. A stock with a beta of “0” indicates that its price is not correlated with the market. A positive beta indicates that the stock follows the market. A negative beta means that the stock inversely follows the market, decreasing in value when the market goes up. 

Disclaimer: The views of the author are in no way suggesting whether or not to buy a stock.  Data is provided by Yahoo Finance.

Leave a Reply

Your email address will not be published. Required fields are marked *