Analysis, Featured, Investing, Market Pulse, Trading Ideas,

Alphabet Inc (GOOGL) Analysis Ahead of Q4 Earnings

Alphabet,  ($GOOGL) Google’s new parent company is reporting its financial results for Q4 of 2015 when the market closes today. This is the first earnings report since the company underwent an elaborate restructuring last year.

Fundamental Analysis

To get an overview of how Alphabet is measuring up against it competitors, we used the SprinkleBit analyzer to compare the to Apple ($AAPL), Facebook ($FB), Microsoft ($MSFT) and Yahoo ($YHOO).

Screen Shot 2016-02-01 at 11.49.31 AM

 

The comparison analysis is based on Revenue Multiple is showing that Alphabet ($GOOGL) is undervalued in comparison to its closest competitors. With the current trading price of $770, (Monday 2/1 @ 12 pm) and the analyzers implied share price of $895, Alphabet is undervalued with 16%.

Technical Analysis

We have also taken a look at the technicals to see how the market is valuing the stock. Technicals show that with an entry price of $770 and a beat, the stock could go to $820. This represents an upside potential of 6.5%. On the contrary, with a miss on earnings the stock could go down to $700. This represents a downside potential of 9%. The risk/reward ratio in this scenario equals 0.7.

Screen Shot 2016-02-01 at 12.05.19 PM

 

Continue the discussion!

0no comment

writer

I am a swing/momentum stock and options trader, and trade mostly tech and consumer trend stocks. I am an entrepreneur and DYI investor seeking financial wealth on my own premises.

Leave a Reply