Stock (Symbol) | Stock Price | |
Google (GOOG) |
$1177 |
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Data is as of | Expected to Report | Sector |
February 9, 2014 |
Apr 14 – Apr 18 |
Technology |
Sharek’s Take | ||
Google’s (GOOG) bought Motorola Mobility in 2011 and last month management decided to dump the money-sucking acquisition. I don’t care that Google paid $12.5 billion only to sell Motorola for $3 billion, what I care about is the profits. Motorola’s money-losing operation has pulled down GOOG profits for multiple quarters, and now that this part of the organization is gone I think profits are set to flow. I feel Google will come in with profit growth of greater than 25% and beat the street in the coming quarters, and this will push the stock up to new All-Time highs. I will purchase GOOG today for the Growth Portfolio. | ||
One-Year Chart | ||
GOOG broke out when it burst past $1000, and volume was high so I should have bought. Here’s my take then. Since then the P/E’s gone from 20 to 23, but the outlook is much better than it was. These numbers at the bottom don’t inspire me. | ||
Earnings Table | ||
Google grew sales 39% last quarter, profits just 13% with Motorola dragging down profitability. GOOG missed by 20 cents too. This company has proven unreliable in hitting analyst estimates, GOOG gets a low grade for certainty. Analysts will likely up Annual Profit Estimates in the coming quarters. But either way, quarterly profit growth looks good once we get past this quarter. |
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Fair Value | ||
I feel GOOG is worth 25 times earnings now. The stock is around $1200 today and I think its worth $1300. I own many other stocks with better upside but Google is growing rapidly for a large company and needs to be in my portfolio. | ||
Ten-Year Chart | ||
The Annual Profits along the right look good, but the stock has been hard to handle for many years now. I originally bought GOOG around $180 and should have held it the entire time, but the profit growth rate has been slow at times and the company routinely misses estimates and has lots of below-par quarters. | ||
Power Ranking | Bottom Line | |
Growth Portfolio
12 of 27 |
Google is timely and will be a leading large cap growth stock to own for the next 12 to 18 months as profits are now set to flow. The negatives about GOOG are it is a wild horse that jumps in different directions without warning and the stock is already close to its Fair Value. |
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Aggressive Growth Portfolio
N/A |