Alphabet Inc. (NASDAQ:GOOG) expected to post EPS at $11.12

Alphabet Inc. (NASDAQ:GOOG) expected to post EPS at $11.12

Alphabet Inc. (NASDAQ:GOOG) expected to post EPS at $11.12

With a market cap of over $760 billion, Google parent company Alphabet, Inc. is the third largest publicly traded entity in the world. In a recent survey of online search engine and social media use, Google’s audience reported the most stability, with 96% of those surveyed saying they use the Google site, and 95% saying that their use of Google as remained steady or increased in the past six months.

With near-total market penetration, and a stable user base, Google and its subsidiaries have a firm foundation to build advertising revenues. So, it may be a surprise that GOOGL stock has ended 2018 almost exactly where it began: trading at $1,100 per share. Despite the share price having dipped recently, GOOGL is looking at a strong fourth quarter report.

The strength of that quarter will be obvious on February 4, when Alphabet releases its Q4 FY2018 earnings. The company is expected to post EPS at $11.12, for 6.9% year-over-year growth. The quarterly revenues, at $31.26 billion, are expected to show a 20.8% increase from the year-ago quarter.

The upbeat expectations are behind five-star Stifel analyst Scott Devitt’s $1,300 price target on GOOGL stock. That’s an 18% upside potential, which is doubly impressive given the already high value of the shares. Regarding the upcoming earnings, Devitt says, “…he expects Alphabet to grow total net revenue 20.5% in Q4, which is roughly in line with the consensus forecast.”

Heading into earnings season, GOOGL has a ‘Strong Buy’ analyst consensus, based on a unanimous 18 ‘buy’ ratings. The average price target is $1,352, giving a 22% upside to the current share price of $1,101.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1,088.68.

The projected upper bound is: 1,135.64.

The projected lower bound is: 1,005.78.

The projected closing price is: 1,070.71.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 42.3874. This is not an overbought or oversold reading. The last signal was a sell 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 51.45. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 71 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -12. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 19 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -20.910 at 1,070.080. Volume was 31% below average (neutral) and Bollinger Bands were 27% narrower than normal.

Open High Low Close Volume___
1,080.1101,083.0001,063.8001,070.080 1,284,281

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,077.20 1,052.75 1,115.90
Volatility: 30 40 33
Volume: 1,348,353 1,810,187 1,659,556

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ALPHABET INC C is currently 4.1% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 14 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH