Shares of Google parent Alphabet reversed from a brief slump that began in July in sync with the market correction that pounded Big Tech companies. Alphabet stock dropped to a 154.93 low on Aug. 5, just above its 200-day moving average. It's rebounded from there and closed above 166 Monday.
Alphabet Stock Rising Amid Big Tech Resurgence
On July 10, Magnificent Seven stock Alphabet rose to an all-time high 191.75 amid the continuing market rally and strength in its online search and cloud hosting businesses. See if it can continue to rise toward the benchmark. Also on Monday, Alphabet stock saw its Relative Strength Rating rise from 66 to 71.
The upgraded 71 RS Rating shows that Alphabet outpaced more than 70% of all stocks for price performance this past year. Research shows that the best-performing stocks tend to have an RS Rating of over 80 in the early stages of their moves. See if Alphabet can continue to show renewed price strength and hit that benchmark.
Alphabet stock earns the No. 4 rank among its peers in the 73-stock Internet-Content industry group. Meta Platforms is the top-ranked stock in the group.
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Alphabet has moved more than 5% past a 153.78 entry in a second-stage consolidation, meaning it's now out of a proper buy zone. Look for the stock to offer a new chance to get in like a three-weeks tight or pullback to the 50-day or 10-week line.
Among its other key ratings Alphabet stock has a good 80 Composite Rating out of 99. It carries a terrific 98 Earnings Per Share Rating, reflecting surging profits over the past year. It also has an excellent A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A tops.
However, one yellow flag to note it its E Accumulation/Distribution Rating on an A+ to E scale. The E rating shows that institutional investors like mutual funds sold more shares than they bought over the last 13 weeks. That is in part due to the recent Big Tech sector drubbing. Look for that rating to improve to C or better.
Double-Digit Quarterly Sales, Profit Growth For A Year
Alphabet posted 35% earnings growth in its most recent report, to $1.93 per share on a year-over-year basis. The prior three quarters its EPS grew 42%, 42% and 53%. Revenue grew 14% to $84.7 billion last quarter, a strong increase for a company that large.
IBD's proprietary RS Rating tracks technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
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