| Stock (Symbol) | Stock Price | |
Google (GOOGL) |
$604 |
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| Data is as of | Expected to Report | Sector |
July 23, 2014 |
Oct 15 – Oct 20 |
Technology |
| Sharek’s Take | ||
 Google’s (GOOGL) is finally free of the “Motorola drag” and put out 27% profit growth last quarter, the best growth the company has had in three years. All systems are now go for GOOGL stock, and the combination of a P/E rising from 23 to 25 combines with 19% profit growth next year gives GOOGL a $790 2015 Fair Value — 31% higher than it is today. That’s solid upside for a large cap growth stock that money managers will feed money into due to its sheer size and solid growth rate (for such a large company). |
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| One-Year Chart | ||
 GOOGL’s click growth was 25% last qtr, better than the 23% growth last year, and mid-20s click growth should equate to mid-20s profit growth — finally it has. I think GOOGL should get a 25 P/E. This P/E of 23 is close to 25 and I would normally shade it in black, but the healthy upside of 31% makes me put this in green. |
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| Earnings Table | ||
 Google’s sales growth has been 10% the past two qtrs, down from 29% 3QtrsAgo, but this low figure is because Motorola isn’t on the books anymore.GOOG missed by 18 cents, which I didn’t pay much attention to because this company has wild variations when it comes to hitting analyst estimates Annual Profit Estimates came down a little bit. Still 19% profit growth is expected next year. Quarterly estimates show Google should be able to continue its 20% growth into the near future. |
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| Fair Value | ||
 GOOGL is currently 10% undervalued, and has 31% upside to 2015’s Fair Value. With the stock market now pushing higher once more, I feel GOOGL will lead the market these coming months. |
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| Ten-Year Chart | ||
 What sticks out in this chart are the 10% profit growth years of 2012 & 2013. Notice now that profit growth has picked up again, the stock’ much higher than it once was. That’s because Google used to have a P/E in the teens, now its in the 20s. This is the 1st qtr I’ve had a full ten-years of stock prices for this ten-year chart. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
13 of 25 |
Google is back to growing rapidly again, and that combined with a healthy stock market should keep the shares trending higher. There’s good upside in this stock, but I like some smaller growth stocks better because they have a chance to jump higher/faster. |
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Aggressive Growth Portfolio
N/A |
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