Is Alphabet Now the Best FAANG Stock to Own?

Alphabet stock has outperformed its FAANG peers over the last one- and three-month time periods. Can that outperformance continue?
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The market has become increasingly choppy as of late, but not for Alphabet  (GOOG) - Get Report  (GOOGL) - Get Report. The stock has found its footing and really taken off to the upside.

That’s despite a lack of clarity in both the broader marker and the Nasdaq. That also goes for its FAANG peers.

With most of the group reporting earnings on the same night in late October, it made for a telling reaction. Facebook  (FB) - Get Report, Apple  (AAPL) - Get Report and Amazon  (AMZN) - Get Report all sold off, while Alphabet stock rallied.

While Apple stock has been perking back up as of late, it’s not necessarily out of the woods. The charts for Amazon and Facebook are less constructive. 

Many stocks in tech -- along with the Nasdaq -- are struggling to break out over resistance. That’s gotten many cautious as we navigate what is still a tricky post-election tape.

That’s not the case for Alphabet, though. Let’s look at why this stock has been the best FAANG stock to own as of late.

Alphabet, Apple, Amazon and Facebook are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells GOOGL, AAPL, AMZN or FB? Learn more now.

Trading Alphabet Stock

Daily chart of Alphabet stock.

Daily chart of Alphabet stock.

A look at Alphabet shows just how strong this name has been. Like the rest of tech, it peaked in September and technically put in a lower high in October. At this point, that action is becoming well-documented.

However, Alphabet’s lower high in October wasn’t definitive in the way it was for other stocks. Instead, it was a digestion candle, followed by another move to the upside.

The move was enough to send Alphabet up through the September high, allowing shares to hit new all-time highs. Additionally, the stock cleared its 138.2% extension in the process.

Like the overall market, Alphabet stock hasn’t had much direction over the past five or six sessions. Instead it’s been consolidating this latest run, as it continues to perform better than its FAANG peers.

Over the last one and three months, Alphabet stock is up 15.7% and 18.1%, respectively. The next best performer is up just 4.5% and 8.6% during those periods, respectively.

As for the stock, a move below $1,700 could trigger a gap-fill down toward the $1,650 area. Near that zone, Alphabet stock will likely find the 20-day moving average. Below it and investors will turn their attention to the 50-day moving average and uptrend support (blue line).

On the upside, a move through the current high near $1,817 could put the 161.8% extension in play at $1,853. Above that and the $2,000 level is possible, followed by the two-times range extension at $2,052.