New Trade for May 24th, 2023

Value stocks dominated 2022, but in 2023 growth is coming back into play as investors acknowledge the light at the end of the tunnel regarding higher interest rates and astronomical inflation.  The Vanguard Growth Index Fund (VUG) has stacked on 23% since the start of the year, while its value counterpart (VTV) is down 2% during the same period.  

Today’s trade alert features a growth name that suffered a humbling 2022 but is looking to regain its power in 2023.  Fundamentally, this ticker checks many of the boxes on our wishlist, and the pros overwhelmingly agree – this is one stock to buy hand over fist.  Click here to find out why.    

Alphabet (GOOG)

Once a dominant market presence, Alphabet suffered a humbling 2022, shedding nearly 40% of its equity value.  However, GOOG stock is up almost 39% this year and remains a compelling consideration, even at its current price. 

The tech giant features a three-year revenue growth rate of 22.9%, outpacing 74.35% of its peers.  Further, its FCF growth rate during the same period pings at 27.2%, above 69.61% of the industry.  In addition, its operating and net margins come in at 26.46% and 21.2%, and both stats rate among the industry’s upper half.  To boot, the company’s Altman Z-Score is 9.11, indicating very low bankruptcy risk.  Turning to Wall Street, GOOG garners a 75% Buy rating from the 51 analysts covering the stock, with none rating the stock a Sell – possibly an indicator that the underlying fundamentals of Alphabet’s digitalized innovations may be too compelling to ignore. 

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