Tech giant Alphabet Inc. (GOOG) needs no introduction. Based in Mountain View, California, the company boasts a market cap of $2.2 trillion. The company provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products through its subsidiaries. It operates through Google Services, Google Cloud, and Other Bets segments.
Shares of the search engine giant have outperformed the broader market considerably over the past year. GOOG has gained 41% over this time frame, while the S&P 500 Index ($SPX) has risen 26.2%. In 2024, GOOG stock is up 25.5%, compared to SPX’s 11.2% returns on a YTD basis.
Zooming in further, GOOG’s gains over the past 52 weeks easily overshadow the iShares Global Comm Services ETF (IXP). The exchange-traded fund has gained 29.8% over the past year, significantly underperforming GOOG’s gains for the period. The stock’s YTD gains easily outshine the ETF’s 16.5% gains.
GOOG’s strong price action relative to the broader indexes over the past year has propelled the tech giant back into the $2 trillion club. The company’s impressive first-quarter results, the announcement of a $70 billion stock buyback, and its first-ever dividend drove investor confidence in the stock.
For the current fiscal year, ending in December, analysts expect GOOG to report an EPS growth of 32.8% to $7.70 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 44 analysts covering GOOG stock, the consensus rating is a “Strong Buy.” That’s based on 35 “Strong Buy” ratings, three “Moderate Buys,” and six “Holds.”
This configuration has been consistent over the past three months.
Recently, DZ Bank’s Ingo Wermann maintained the “Buy” rating on GOOG stock and raised his price target from $175 to $200, implying a potential upside of 12.3% from current levels.
The mean price target of $192.82 represents an 8.3% premium to GOOG’s current price levels. The Street-high price target of $225 suggests an ambitious upside potential of 26.4%.
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On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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