Google Inc (GOOG): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Thursday, August 1, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.

 



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Google Inc GOOG Internet Software & Services 8.8 +22.41% $880.83

Why We Like The Stock:

Google Inc (GOOG) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Stocks in the Internet Software & Services space have been flashing buy signals this week, as we featured WebMD (WBMD) on Tuesday's Bull's Eye Report, and think Pandora Media (P) is a compelling buy as well. In a crowded sub-industry with competitors like Facebook (FB) and LinkedIn (LNKD) finally gaining some steam, Google Inc (GOOG) still remains one of the most attractive stocks despite its stature as a well-known, major player. Recently, the stock hit new all-time highs of $927.13 on July 16th before pulling back in the weeks following. Since then, the stock has based and bounced right off of the $880 level, currently in the process of crossing above its major short-term moving averages. We like the tech giant at current prices for a run back to all time highs, with a clear stop at the $880 mark.
We Would Be Buyers:

At the current price (~$901.99), or on a pullback to the 50-day moving average ($887.86).

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Company Profile:

Google Inc. (Google) is a global technology company focused on improving the ways people connect with information. The Company generates revenue primarily by delivering online advertising. As of December 31, 2011, the Company’s business was focused on areas, such as search, advertising, operating systems and platforms, and enterprise. Businesses use its AdWords program to promote their products and services with targeted advertising. In addition, the third parties that comprise the Google Network use its AdSense program to deliver relevant advertisements that generate revenue. In April 2013, Google Inc acquired Wavii. In May 2013, Google Inc acquired an undisclosed minority stake in LendingClub Corp. In May 2013, Google Inc acquired Makani Power. On June 11, 2013, Google Inc bought Israeli mapping startup Waze acquiring an online real-time mapping service. Effective July 3, 2013, Google Inc acquired a 7% interest in Vevo LLC.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  Google Inc - Last 3 Months

  Google Inc - Last 12 Months

  Google Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

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The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , Technology

Referenced Stocks: FB , GOOG , LNKD , P , WBMD

David Moenning


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