Alphabet
GOOGL
Inc. is scheduled to report earnings after Tuesday’s close. The stock hit a record high near $151.55/share in 2022 and is currently trading near $139/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $1.45/share on $75.91 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.54/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings have grown double digits in the most recent quarter on a year-over-year basis. Meanwhile, sales grew by 7% on a year-over-year basis. Return on Equity (R.O.E.) remains very impressive and has consistently been above 20% in the last four quarters. The stock sports a Price to Earnings (P/E) ratio of 28, which is higher than the S&P 500.
A Closer Look At The Technicals
Technically, the stock is acting very well and is trading -1.5% below its 52-week high. The stock has performed very well in 2023, has enjoyed strong relative strength, and is well positioned to rally ahead of earnings.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com report.
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