GOOGL Stock: A+ Profitability And A+ Momentum | 2-Minute Analysis (GOOGL)

Core Viewpoint - Alphabet Inc. (GOOGL) is currently rated as a Hold by the Seeking Alpha Quant rating system, while analysts show a Buy rating and Wall Street analysts rate it as a Strong Buy [3]. Company Overview - Alphabet Inc. has a market capitalization of $3.74 trillion and operates within the Communication Services sector, specifically in the Interactive Media and Services industry [4]. Valuation Metrics - The Valuation grade is an F, with an enterprise value-to-sales ratio of 9.56 compared to the sector average of 1.94, and a price-to-cash flow ratio of 23.65 versus the sector at 7.53 [5]. - The enterprise value-to-EBITDA stands at 20.84, significantly higher than the sector's 8.30, and the PEG non-GAAP forward ratio is 1.87 compared to the sector's 1.29, indicating overvaluation but a willingness among investors to pay for growth [5]. Growth Metrics - The Growth grade is a B, with a year-over-year revenue growth of 13.42%, outpacing the sector's 3.10%, and an EPS diluted growth of 34.51% compared to the sector's 18.64% [6]. Profitability Metrics - The Profitability grade is an A+, with a net income margin of 32.23%, significantly higher than the sector's 3.84% [6]. Momentum Metrics - The Momentum grade is also an A+, with a one-year price performance of 61.12% [6]. Revisions Metrics - The Revisions grade is an A, with 51 up revisions and 1 down revision for earnings per share in the last three months, and 52 up revisions with no down revisions for revenue in the same period [7]. Dividend Information - Alphabet pays a small yield of 27 basis points, which started in June 2024. The dividend grades include an A+ for safety and growth, but an F for yield and consistency, indicating underperformance compared to the sector [8].