Alphabet (GOOGL) Raised to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Alphabet (NASDAQ:GOOGL) from a hold rating to a buy rating in a report published on Friday morning. The brokerage currently has $1,208.00 price objective on the information services provider’s stock.

According to Zacks, “Alphabet's strengthening cloud unit is aiding substantial revenue growth. Moreover, the growing momentum of Google Cloud and expanding data centers will continue to bolster the company’s presence in the cloud space. Also, major updates in its search segment are enhancing the search results which is a tailwind. Additionally, Google’s strong focus on the innovation of its AI techniques and Android OS along with growing presence in the home automation space are driving its top-line growth further. Notably, the stock has outperformed the industry it belongs to in the past one year. However, the company’s growing litigation issues might hurt its profitability. Also, it's increased spending on consumer gadgets, YouTube video app and cloud computing services remain concerns. Also, rising competition in the online ad market.”

GOOGL has been the topic of a number of other reports. Wedbush began coverage on shares of Alphabet in a research note on Wednesday, October 17th. They issued an outperform rating and a $1,350.00 price objective on the stock. Jefferies Financial Group set a $1,200.00 price objective on shares of Alphabet and gave the company a buy rating in a research note on Thursday, December 20th. Morgan Stanley reissued an overweight rating and issued a $1,500.00 price objective (down from $1,515.00) on shares of Alphabet in a research note on Wednesday, November 14th. Nomura reaffirmed a buy rating and set a $1,400.00 price target on shares of Alphabet in a research note on Tuesday, December 4th. Finally, Pivotal Research decreased their price target on shares of Alphabet from $1,080.00 to $1,010.00 and set a hold rating on the stock in a research note on Friday, October 12th. Three equities research analysts have rated the stock with a hold rating and thirty have given a buy rating to the company’s stock. The company presently has a consensus rating of Buy and an average target price of $1,344.59.

NASDAQ:GOOGL opened at $1,064.47 on Friday. The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.10 and a current ratio of 4.14. Alphabet has a fifty-two week low of $977.66 and a fifty-two week high of $1,291.44. The firm has a market cap of $752.70 billion, a PE ratio of 33.21, a P/E/G ratio of 1.26 and a beta of 1.00.

Alphabet (NASDAQ:GOOGL) last posted its quarterly earnings results on Thursday, October 25th. The information services provider reported $13.06 earnings per share for the quarter, topping the Zacks’ consensus estimate of $10.54 by $2.52. Alphabet had a net margin of 14.45% and a return on equity of 19.40%. The business had revenue of $27.16 billion for the quarter, compared to analysts’ expectations of $27.32 billion. As a group, equities research analysts expect that Alphabet will post 45.32 earnings per share for the current fiscal year.

Several hedge funds have recently added to or reduced their stakes in GOOGL. Accurate Investment Solutions Inc. lifted its stake in Alphabet by 150.0% in the fourth quarter. Accurate Investment Solutions Inc. now owns 50 shares of the information services provider’s stock valued at $52,000 after buying an additional 30 shares during the last quarter. Vestor Capital LLC bought a new stake in Alphabet in the third quarter valued at $62,000. Sound Income Strategies LLC lifted its stake in Alphabet by 71.4% in the fourth quarter. Sound Income Strategies LLC now owns 96 shares of the information services provider’s stock valued at $100,000 after buying an additional 40 shares during the last quarter. Parkside Investments LLC bought a new stake in Alphabet in the third quarter valued at $124,000. Finally, ELM Advisors LLC bought a new stake in Alphabet in the third quarter valued at $128,000. 33.32% of the stock is owned by institutional investors and hedge funds.

Alphabet Company Profile

Alphabet Inc, through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure and newer efforts, including Virtual Reality.

Read More: Compound Annual Growth Rate (CAGR)

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