Alphabet (GOOGL) is breaking out today as earnings season kicks in.
GOOGL is part of the Conservative Growth Portfolio and I will add it back to the Growth Portfolio and Aggressive Growth Portfolio today.
At $778 GOOGL sells for 23x 2016 earnings estimates, and grew profits 26% last qtr, with 21% and 17% growth expected the next 2 qtrs. The company beat $8.09 estimate by 58 cents last qtr.
With the dollar weakening recently, my thought is F/X issues with multinationals will dissipate by the Summer, and the stocks could rally in anticipation of this (perhaps management will suggest so).
I will sell Noah Holdings (NOAH) in the Aggressive Growth Portfolio to make room for GOOGL, as Noah’s profit growth was below par last qtr. GOOGL will rank 6th in this portfolio’s Power Rankings. GOOGL will rank 7th in the Growth Portfolio Power Rankings.
