Trade-Ideas LLC identified

Alphabet

(

GOOGL

) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Alphabet as such a stock due to the following factors:

  • GOOGL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.3 billion.
  • GOOGL has a PE ratio of 32.
  • GOOGL is currently in the upper 30% of its 1-year range.
  • GOOGL is in the upper 25% of its 20-day range.
  • GOOGL is in the upper 35% of its 5-day range.
  • GOOGL is currently trading above yesterday's high.
  • GOOGL has experienced a gap between today's open and yesterday's close of 4.2%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on GOOGL:

Alphabet Inc., through its subsidiaries, provides online advertising services in the United States, the United Kingdom, and rest of the world. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. GOOGL has a PE ratio of 32. Currently there are 28 analysts that rate Alphabet a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Alphabet has been 1.6 million shares per day over the past 30 days. Alphabet has a market cap of $520.2 billion and is part of the technology sector and internet industry. The stock has a beta of 0.94 and a short float of 0.9% with 1.49 days to cover. Shares are down 2.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Alphabet as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 20.5%. Since the same quarter one year prior, revenues rose by 17.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although GOOGL's debt-to-equity ratio of 0.04 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 4.99, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $7,658.00 million or 15.73% when compared to the same quarter last year. Despite an increase in cash flow, ALPHABET INC's average is still marginally south of the industry average growth rate of 19.28%.

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