Sign InAlphabet Inc. Shows Bullish Potential with AI Growth and Positive Analyst Outlook
Summary
Alphabet Inc. (GOOG) has a robust EPS of $4.57, an intrinsic value higher than the current market price, and is leveraging AI capabilities for growth, making it a strong Hold-to-Buy prospect, but investors should be cautious about the upcoming earnings report on July 25, 2023. (Date of analysis: July 12, 2023)
Fundamental Analysis
Alphabet Inc., trading under the ticker GOOG, closed at $119.62 on NASDAQ on July 12, 2023. The company has a substantial market cap of $1.58 trillion and a relatively satisfactory trading volume of 25.86 million shares, nearly matching its average trading volume of 25.68 million shares.
Alphabet Inc. has a robust EPS of $4.57 and a somewhat high-price-to-earnings ratio of 27.33. Considering its DCF of $126.56, it indicates that the intrinsic value of the stock is higher than the current market price. Further, with prices ranging between a 52-week low of $83.45 and a year high of $129.55, the stock shows potential for respectable highs.
Relevant news indicates that Alphabet Inc. has been developing enhancements to its Google Bard AI capabilities, standing as a good sign from an investment standpoint as it shows company growth and innovation. Also, artificial intelligence stocks, including Alphabet Inc., are being well-favoured by the market in July.
Regarding upcoming events, the next earnings announcement is on July 25, 2023, which could lead to price volatility depending on the reported results.
Technical Analysis
When looking at Alphabet Inc., its last closing price is slightly below the 50-day moving average of $119.89 but significantly above the 200-day moving average of $103.03, suggesting a bullish trend for the stock in the longer term.
The MACD (3-month) of -1.69 signals a bearish momentum in the short term. At the same time, the RSI14 at 46 signals neutral momentum, as it is neither overbought nor oversold.
Notably, given the consensus target price of $148.12 and the median price target of $145, the analysts are currently bullish on the stock.
Price Predictions
Based on the above analyses, Alphabet Inc.'s stock price may hover around its current levels or even slightly dip due to the bearish short-term momentum on the next trading day, July 13, 2023. However, given the long-term bullish trend, the stock may make some gains leading up to the earnings announcement.
Conclusion
Concluding the analysis, Alphabet Inc. presents a strong Hold-to-Buy prospect. With its new strategic directions leveraging AI capabilities, attractive intrinsic value higher than the market price, and potential for price increases in the longer-term trend, the stock appears primed for growth. However, investors should keep an eye on the earnings report due later this month that could affect the stock's trajectory and adjust their strategy accordingly.
