Bullish signs for Alphabet after post-earnings decline
When Alphabet (Nasdaq: GOOG) announced earnings on April 29, the company beat its EPS estimate, but it came up a little short on its revenue estimate. Investors didn’t take the news well and the stock fell 8.5% the next day. That was the biggest one-day decline for the stock since 2012.
Now that things are starting to settle back down, there are a couple of signs that could be bullish for the stock. On May 6, after opening sharply lower the stock rallied back to close slightly higher. The overall market dropped sharply at the open that day and rallied back, but didn’t make it back to positive territory. The candlestick that was formed on May 6 is called a bullish engulfing pattern.
If you look at the two candlesticks in the circle, you see that the opening price was below the lowest point from Friday May 3, and the closing price was above the highest point from that day. The entire candle from Monday “engulfs” the candle from Friday and this pattern is considered a bullish sign.
In addition to the chart pattern, the Tickeron AI Trend Prediction tool generated a bullish signal on Alphabet on May 2. The signal showed a confidence level of 81% and it calls for a gain of at least 4% over the next month. Past predictions on the stock have been successful 69% of the time.
Even with the earnings disappointment, Alphabet still has really good fundamental measurements. The company has been able to grow earnings by 24% per year over the last three years while sales increased by 23%. The revenue growth that was so disappointing—it was up 17% from the first quarter of 2018.
GOOG sees its Stochastic Oscillator climbs out of oversold territory
On November 29, 2024, the Stochastic Oscillator for GOOG moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 48 instances where the indicator left the oversold zone. In of the 48 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
GOOG moved above its 50-day moving average on November 25, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GOOG advanced for three days, in of 371 cases, the price rose further within the following month. The odds of a continued upward trend are .
GOOG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 315 cases where GOOG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for GOOG moved out of overbought territory on November 13, 2024. 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 49 similar instances where the indicator moved out of overbought territory. In of the 49 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on November 20, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on GOOG as a result. In of 90 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 GOOG turned negative on November 18, 2024. 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 49 similar instances when the indicator turned negative. In of the 49 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 GOOG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
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 90, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GOOG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (6.868) is normal, around the industry mean (11.013). P/E Ratio (26.982) is within average values for comparable stocks, (51.267). Projected Growth (PEG Ratio) (1.637) is also within normal values, averaging (3.441). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (6.477) is also within normal values, averaging (19.431).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
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a holding company with interests in software, health care, transportation and other technologies
Industry InternetSoftwareServices