Is Alphabet Stock a Buy?
With many stocks having now recovered most of the losses sparked by April's "Liberation Day" crash, there aren't a lot of bargain stocks to be found. However, a look at the biggest companies on the market or running a stock screener will turn up one stock that looks undervalued: Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).The search giant currently trades at a price-to-earnings ratio (P/E) of just 18.5, which is close to a 30% discount from the S&P 500's P/E of 25.9. That discount comes as Alphabet's growth remains solid. In its first-quarter earnings report, revenue rose 12% to $90.2 billion, with operating income jumping 20% to $30.6 billion. However, there's more to investing than the most recent quarter's performance. There seems to be two major reasons Alphabet's valuation has fallen. Below, I'll take a look at both of those before evaluating whether Alphabet stock is a buy.Continue reading
With many stocks having now recovered most of the losses sparked by April's "Liberation Day" crash, there aren't a lot of bargain stocks to be found. However, a look at the biggest companies on the market or running a stock screener will turn up one stock that looks undervalued: Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
The search giant currently trades at a price-to-earnings ratio (P/E) of just 18.5, which is close to a 30% discount from the S&P 500's P/E of 25.9. That discount comes as Alphabet's growth remains solid. In its first-quarter earnings report, revenue rose 12% to $90.2 billion, with operating income jumping 20% to $30.6 billion.
However, there's more to investing than the most recent quarter's performance. There seems to be two major reasons Alphabet's valuation has fallen. Below, I'll take a look at both of those before evaluating whether Alphabet stock is a buy.
