Alphabet (GOOGL) has a “Perfect 10” Smart Score on TipRanks, which implies that the stock has the potential to outperform the market. It is worth highlighting that GOOGL stock has risen over 37% in the past year, surpassing the S&P 500’s (SPX) nearly 24% gain.
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Before we continue, let’s take a moment to understand how TipRanks calculates a Smart Score for stocks. Based on eight key market factors, including analyst ratings, and technical analysis, among others, the potential of a stock is evaluated. After considering these factors, a Smart Score between 1 and 10 is assigned to the stock, with 10 being the highest score.
Factors Supporting GOOGL’s Top Smart Score
Interestingly, Alphabet stock has received a “Perfect 10” Smart Score, meeting seven out of eight key parameters. The stock has received a positive signal from hedge funds, with data showing that hedge funds bought about 1.3 million shares of the company in the last quarter. The stock also enjoys bullish Blogger sentiment and Positive News Sentiment on TipRanks.
Furthermore, GOOGL’s Strong Buy consensus rating on TipRanks is another factor supporting its top Smart Score. It is worth highlighting that three Top-rated analysts reiterated their Buy ratings on the stock last week.
Among the bullish analysts, Doug Anmuth from J.P. Morgan (JPM) pointed out that any legal action against Alphabet, such as the Justice Department’s proposal to break up Google over its online search monopoly, could hurt the company’s financial performance. However, he thinks the judge’s final decision next summer will be more fair, with a focus on the potential impact on users. (To see Anmuth’s track record, click here.)
What Is the Price Target for GOOGL?
Turning to Wall Street, GOOGL stock has a Strong Buy consensus rating based on 25 Buys and six Holds assigned in the last three months. At $212.11, the average Alphabet price target implies a 10.91% upside potential.
