Recently, Alphabet was upgraded to an AA-plus corporate credit rating at S&P Global.
The company's rock-solid balance sheet, its stranglehold over a lion's share of the digital advertising market, the possibility of rapid growth in the smartphone space, and the ever-widening Google ecosystem, makes Alphabet an unbeatable proposition.
Alphabet's recent promotion from AA to AA-plus is a bullish signal to FANG investors. And for a company as innovative and cutting-edge as Alphabet is, the upgrade in credit rating really goes to show how the company is in a league of its own among the FANG stocks.
In just six years, Alphabet has tripled its annual sales to $90 billion, maintained gross margins at over 60% and more than doubled its annual profits.
Further, the company's $86.3 billion pile of cash and short-term investments gives it the ammunition to easily overwhelm Baidu (BIDU - Get Report) , Twitter (TWTR - Get Report) , Yandex (YNDX - Get Report) , and Go Daddy (GDDY - Get Report) all at once.
Beyond its web arm, Alphabet has exposure to exciting growth opportunities in the smartphone space and the self-driving arena.
BMO Capital Markets estimates that Alphabet sold 900,000 Pixel smartphones in Q4 2016 and expects to ship 6 million units in 2017.
In the automobile market, Alphabet's self-driving car unit, Waymo, is far more developed than its rivals with 30 times more miles tested, according to recent numbers from the California DMV.
Experts project Alphabet to report over 19% earnings per share growth annually for the next 5 years. Trading at 20.5 times forward earnings, Alphabet comes at a massive bargain to the internet service and software peer group average of 48 times, which is heavily skewed by Amazon's astronomical forward price-to-earnings ratio of 117.
Clearly, Alphabet is in a class of its own. With fantastic financials and diverse long-term capabilities, it's the FANG stock that's leading the pack.
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