Alphabet Hitting Technical Support Ahead of Earnings
Google parent Alphabet (Nasdaq: GOOGL) is set to report earnings Thursday after the closing bell and the stock has hit a technical support level ahead of the report.
Like the rest of the tech sector, Google has been trending lower over the last few months and it is testing its 52-week moving average. In this case though, Google has another support level in addition to the moving average.
Over the last two years, all of the major dips in the stock can be connected with one trendline. The stock has touched that trendline in each of the last three weeks, but has remained above the trendline.
You can see that the stock’s overbought/oversold indicators are as low as they have been in the last few years which is another good sign that the stock could be due to rally. The 10-week RSI hit its lowest level since the summer of 2016 while the weekly stochastic readings are hitting oversold levels for only the fifth time in the last three and a half years.
The sentiment indicators on Alphabet are pretty optimistic, but they have been that way for as long as I can remember. The short interest ratio is a paltry 0.97, but the ratio has been below 2.0 for most of the past year. It was hovering right around 1.0 back at the end of March when the stock bounced off the trendline.
There are 43 analysts following the stock and 38 of them have the stock rated as a “buy” and the other five have it rated as a “hold”. These figures are exactly the same as they were back in July when the company last reported earnings.
Analysts expect the company to report earnings of $10.42 on revenue of $34.04 billion for the third quarter. The EPS estimate has been ratcheted down from $10.46 over the last 30 days. This suggests that the bar is being lowered slightly heading in to the earnings report.
Regardless of what Alphabet’s earnings report says, it will take quite a bit of selling pressure to move the stock below the trendline and with the stock as oversold as it is, that doesn’t look likely in my view.
Aroon Indicator for GOOGL shows an upward move is likely
GOOGL's Aroon Indicator triggered a bullish signal on June 07, 2023. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 328 similar instances where the Aroon Indicator showed a similar pattern. In of the 328 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The 50-day moving average for GOOGL moved above the 200-day moving average on May 03, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GOOGL advanced for three days, in of 341 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for GOOGL moved out of overbought territory on June 07, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 47 similar instances where the indicator moved out of overbought territory. In of the 47 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 71 cases where GOOGL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on June 07, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on GOOGL as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GOOGL turned negative on June 02, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GOOGL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GOOGL broke above its upper Bollinger Band on June 06, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. GOOGL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.963) is normal, around the industry mean (21.660). P/E Ratio (27.248) is within average values for comparable stocks, (41.639). Projected Growth (PEG Ratio) (1.519) is also within normal values, averaging (3.365). Dividend Yield (0.000) settles around the average of (0.023) among similar stocks. P/S Ratio (5.609) is also within normal values, averaging (9.533).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a holding company with interests in software, health care, transportation and other technologies
Industry InternetSoftwareServices
GOOGL and
Correlation & Price change
A.I.dvisor indicates that over the last year, GOOGL has been closely correlated with GOOG. These tickers have moved in lockstep 100% of the time. This A.I.-generated data suggests there is a high statistical probability that if GOOGL jumps, then GOOG could also see price increases.
| Ticker / NAME | Correlation To GOOGL | 1D Price Change % | ||
|---|---|---|---|---|
| GOOGL | 100% | -3.78% | ||
| GOOG - GOOGL | 100% Closely correlated | -3.85% | ||
| SPOT - GOOGL | 69% Closely correlated | -3.08% | ||
| META - GOOGL | 65% Loosely correlated | -2.76% | ||
| PINS - GOOGL | 59% Loosely correlated | -1.14% | ||
| ZG - GOOGL | 58% Loosely correlated | -1.89% | ||
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