Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio

It doesn’t matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

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While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Momentum investors, who live by the saying “the trend is your friend,” are most interested in taking advantage of upward or downward trends in a stock’s price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

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Alphabet is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily being a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare providers and others. In the online search arena, Google has a monopoly with more than 94% 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.

GOOGL is a Zacks Rank #3 (Hold) stock, with a Momentum Style Score of A and VGM Score of B. Shares are up 0.7% over the past one week and up 14.1% over the past four weeks. GOOGL has gained 38% in the last one-year period as well. Looking at trading volume, an average of 30,694,468 shares exchanged hands over the last 20 trading days.

A company’s earnings performance is important for momentum investors as well. For fiscal 2024, 17 analysts revised their earnings estimate higher in the last 60 days for GOOGL, while the Zacks Consensus Estimate has increased $0.37 to $8.02 per share. GOOGL also boasts an average earnings surprise of 11.8%.

With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding GOOGL to their portfolios.

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