This is the second article is a series of stocks that have the highest general investor interest as measured by the number of Motley Fool readers who express an opinion on a stock. Today Google (
GOOG) comes in second only to Apple (
AAPL) with 16,927 readers expressing an opinion; which happens to be that 85% of those readers think the stock will out perform the market. The price momentum on the
Barchart price chart confirms their prediction.
Google Inc. (
GOOG) maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. It offers AdWords, an auction-based advertising program; AdSense program, which enables Web sites that are part of the Google Network to deliver ads from its AdWords advertisers; Google Display, a display advertising network that comprises the videos, text, images, and other interactive ads; DoubleClick Ad Exchange, a real-time auction marketplace for the trading of display ad space; and YouTube that provides video, interactive, and other ad formats for advertisers. The company also provides Google Mobile that optimizes Google’s applications for mobile devices in browser and downloadable form; and enables advertisers to run search ad campaigns on mobile devices, as well as Google Local that provides local information on the Web; and Google Boost for small businesses to participate in the ads auction. In addition, it offers Android, an open source mobile software platform; Google Chrome OS, an open source operating system; Google Chrome, a Web browser; Google TV, a platform for the consumers to use the television and the Internet on a single screen; and Google Books platform to discover, search, and consume content from printed books online. Further, the company provides Google Apps, a cloud computing suite of message and collaboration tools, which includes Gmail, Google Docs, Google Calendar, and Google Sites; Google Search Appliance that offers real-time search of business and intranet applications, and public Web sites; Google Site Search, a custom search engine; Google Commerce Search for online retail enterprises; Google Checkout to make online shopping and payments streamlined and secure; Google Maps Application Programming Interface; and Google Earth Enterprise, a firewall software solution for imagery and data visualization. Google Inc. was founded in 1998 and is headquartered in Mountain View, California. (Yahoo Finance)
Barchart technical indicators:
- 80% Barchart overall technical buy signal
- Trend Spotter technical buy signal
- Trades above its 20, 50 and 100 day moving average
- 14 new highs and up 30.51% in the last month
- Relative Strength Index is 75.57 and rising
- Trades around 619.64 which is above its 50 day moving average of 527.66
Fundamental factors:
- Wall Street brokerage analysts consider this a core holding for growth portfolios
- Analysts have issued 13 strong buy, 20 buy, 5 hold and no negative recommendations to their clients
- Sales are projected to increase by 30.30% this year and another 22.20% next year
- Earnings are estimated to increase by 19.70% this year, followed by another 18.10% next year and continue by 18.86% annually for at least the next 5 years
- The stock is trading slightly below its 12 month trailing P/E ratio at about 92% of its past P/E trading range
- This company is one of the few that says it will add headcount next year and has a 6,000 employee increase projected
General investor sentiment:
- The 16,927 Motley Fool readers that expressed an opinion had 85% vote that the stock will beat the market
- 3,480 of the more experienced All Stars are slightly more positive with 90% voting that the stock will out perform the market
- The Wall Street analysts Fool follow vote 46 to 0 that the stock will beat the market
Summary: Google's (
GOOG) double digit increases in sales and earnings are a great sign. The announcement of 6,000 additional employees is a bright spot in this economy. Investors could see a 23% increase +/- 4% annually over the next 5 years.
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