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 break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success.
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 roughly 90% 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.
On May 19, 2025, GOOGL was added to the Zacks Focus List at $166.19 per share. Shares have increased 51.95% to $252.53 since then.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.09 to $9.97. GOOGL boasts an average earnings surprise of 16%.
Earnings for Alphabet’s are forecasted to see growth of 24% for the current fiscal year as well.
Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like GOOGL, then, you’re likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum.
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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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