Published on 31 May 2024 on Zacks via Yahoo Finance

Here's Why Alphabet (GOOGL) is a Must-Buy Stock Right Now

Investors looking for maximum returns should consider Alphabet GOOGL adding to their portfolios due to its solid fundamental strength.Shares of the search giant have risen 23.2% year to date, outperforming the Zacks Computer & Technology sector’s growth of 18.1% and the S&P 500 index’s return of 11.5% during the same time frame.This outperformance reflects the company’s back-to-back quarters of impressive financial performance. Alphabet’s earnings per share surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 11.3%. In its last reported quarter, the top and bottom lines beat the consensus mark and witnessed strong year-over-year growth.We believe that GOOGL shares have further room for expansion, given the company’s growing efforts to bolster its generative AI capabilities. Its leading position in the search engine space, strengthening cloud footprint, solid momentum in YouTube and Android, and growing traction in the autonomous driving space should aid Alphabet’s prospects further.The upswing in the company’s estimates testifies to the aforesaid fact. The Zacks Consensus Estimate for 2024 revenues and earnings is pegged at $295.53 billion and $7.61 per share, respectively. This indicates year-over-year improvements of 15.2% in the top line and 31.2% in the bottom line. The EPS estimate has also moved 0.5% north over the past 30 days.Let us delve deeper into the fundamental strength of Alphabet.

Alphabet Inc. Price and Consensus