TheStreet Ratings quantitative stock model has maintained a Buy recommendation on Alphabet Inc (GOOGL) since April 24, 2018. Over that nearly three-month period, the stock has risen almost 18%.
The previous upgrade to Buy from Hold came on July 19, 2016 when shares were trading at just $736.96. The subsequent run-up in the stock led to a February 2, 2018 downgrade to Hold. Shares now stand at roughly $1,202.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ALPHABET INC as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the analysis by TheStreet Ratings goes as follows:
- GOOG's revenue growth has slightly outpaced the industry average of 25.6%. Since the same quarter one year prior, revenues rose by 25.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although GOOG's debt-to-equity ratio of 0.03 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 4.71, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 72.44% and other important driving factors, this stock has surged by 25.39% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GOOG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Internet Software & Services industry average. The net income increased by 73.3% when compared to the same quarter one year prior, rising from $5,426.00 million to $9,401.00 million.
- You can view the full analysis from the report here: GOOG
-- Reported by Kevin Baker in Palm Beach Gardens, FL
Disclosure: Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet, Inc. or any of its contributors.