Building an investment portfolio from scratch can be difficult, especially if you’re new to investing. It’s easy to feel overwhelmed with so many different investment options out there, but focusing on stocks that are set to outperform the market over the next 12 months is an excellent place to start.
Now, let’s take a deep dive into a great stock that could be just the right addition to your portfolio.
Alphabet is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare and others. In the online search arena, Google has a monopoly with more than 94% of the online search volume and market. Over the years, the company has witnessed increase in search queries, resulting from ongoing growth in user adoption and usage, primarily on mobile devices, continued growth in advertiser activity, and improvements in ad formats.
GOOGL was added to the Zacks Focus List on May 19, 2025 at $166.19 per share. Since then, shares have increased 18.25% to $196.52.
16 analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.41 to $9.94. GOOGL also boasts an average earnings surprise of 16%.
Moreover, analysts are expecting Alphabet’s earnings to grow 23.6% for the current fiscal year.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding a Focus List stock like GOOGL, there’s a great chance you’ll be getting into a company whose future earnings estimates will be raised, which can lead to price momentum.
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This article originally published on Zacks Investment Research (zacks.com).
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