Share price: $899
Year-to-date gains: 27%
The company, led by CEO Larry Page, is not afraid to try new things — and it’s paid off. In its arsenal, Google has everything from established services like Chrome, Gmail, YouTube and its search engine, to newer offerings like Google Glass, Motorola Mobile and Android.
No wonder then that the stock’s gone from $100 in 2004 to just under $900 now. But don’t be scared away by that number. Despite the big price tag, the king of search is cheaper on a forward P/E basis than rival Yahoo (YHOO) — and it’s slated for bigger growth.
YHOO, priced at $30 per share, is slated for 11% annualized earnings growth over the next half -decade and trades for a multiple north of 18. GOOG, on the other hand, wins on both accounts with 15% estimated earnings growth and a multiple closer to 17.
Besides, the company’s culture of innovation and experimentation is almost guaranteed to foster the products and thus financial performance to keep driving that price tag even higher.
As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.