Earnings Growth & Price Strength Make Alphabet (GOOGL) a Stock to Watch

Core Insights - The Zacks Focus List is a curated portfolio of 50 stocks aimed at long-term investors, expected to outperform the market over the next 12 months [3][5] - The Focus List has demonstrated strong historical performance, with a cumulative return of 2,519.23% from February 1, 1996, to March 31, 2021, compared to the S&P 500's return of 854.95% [5] - The methodology for selecting stocks in the Focus List relies on earnings estimate revisions, which are critical for predicting future stock performance [6][9] Focus List Performance - In 2020, the Focus List achieved an annualized gain of 13.85%, outperforming the S&P 500's return of 9.38% [5] - The stocks in the Focus List are selected based on a proprietary model that evaluates earnings estimate changes, leading to a bullish consensus among analysts [9][10] Stock Selection Process - The Zacks Rank, which classifies stocks into five groups from "Strong Buy" to "Strong Sell," is integral to the Focus List selection process [9] - Stocks with positive earnings estimate revisions are more likely to experience further upward revisions, enhancing their potential for price momentum [7][10] Spotlight on Alphabet (GOOGL) - Alphabet has evolved significantly, expanding beyond search engines into cloud computing, streaming, and autonomous vehicles, holding over 94% of the online search market [11] - Since its addition to the Focus List on May 19, 2025, GOOGL shares have increased by 4.29%, with a current price of $173.32 [12] - GOOGL's earnings estimates for fiscal 2025 have been revised upwards by 16 analysts, with a consensus estimate increase of $0.78 to $9.51, and an expected earnings growth of 18.3% for the current fiscal year [12]