Hit or miss, come July 25, Alphabet Inc. (NASDAQ:GOOG) worth owning

Hit or miss, come July 25, Alphabet Inc. (NASDAQ:GOOG) worth owning

Hit or miss, come July 25, Alphabet Inc. (NASDAQ:GOOG) worth owning

I last wrote about Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) May 1 just after the company reported an earnings miss. Down more than 8% on the news, I recommended investors buy Google stock despite the miss. 

Heading into next week’s second-quarter earnings call, I thought I’d revisit some of the seven reasons I gave for buying GOOGL stock.

Analysts aren’t expecting much from Alphabet, but that doesn’t mean you shouldn’t consider buying Alphabet stock at current prices. Here’s why.

Analysts Still Like Google Stock

Although analysts grew less confident about Alphabet after its first-quarter results — eight cut the Google target price on the news — 34 still have a buy rating, with three giving it an overweight rating and only six a hold. None have a sell rating on Google stock.

The target price? $1,335.22 is the average with a high of $1,500 and a low of $1,150. At the average target price, investors are looking at 16% upside over the next 12 months.

I don’t know about you, but I’d take a 16% annual return every day of the week and twice on Sundays.

Analysts might have lowered their target prices, but when 86% of investors have a buy or overweight rating on its stock, there must be something good about the company.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,195.09.

The projected lower bound is: 1,095.89.

The projected closing price is: 1,145.49.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white 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 78.6089. This is not an overbought or oversold reading. The last signal was a sell 0 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 59.97. 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 27 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 89. 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 24 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -7.230 at 1,146.350. Volume was 21% below average (neutral) and Bollinger Bands were 18% narrower than normal.

Open High Low Close Volume___
1,150.9701,158.3601,145.7701,146.350 1,170,047

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 1,137.42 1,116.34 1,116.80
Volatility: 15 29 35
Volume: 1,117,998 1,458,009 1,635,353

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 2.6% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 18 periods.

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