For tech giant Google (GOOG), the internet is no longer the limit. Just yesterday Google announced that it signed a 60-year lease with NASA for three hangars, which it will renovate and use for aviation, space and exploration and robotics projects.
With this multi-billion-dollar project on the horizon, is now a good time to buy into Google?
Google – Company Profile
As the company behind the world’s most advanced and popular search engine, Google is a major player in the tech sector.
However, Google clearly isn’t satisfied with simply having the world’s most visited website, because Google has entered several other tech-based markets, including social networking and mobile phones.
Google has more than 51,000 full-time employees. At this time, GOOG does not offer a dividend yield.
Google – Earnings Rundown
Despite being a hub of innovation, releasing impressive products every few months, Google has struggled to live up to analysts’ expectations this year. Still, things seem to be looking up; analysts’ estimates for the current quarter look promising.
Analysts estimate that earnings per share will be $7.21, up 16% from the same quarter last year. Google is also estimated to bring in $18.59 billion in revenue. Growth estimates for the quarter look strong at 20%, just around the industry average of 19.5%.
Google will most likely release its official earnings report in January.
Google – Current Ratings
Google’s ratings have been all over the place, ranging from a “hold” to a “buy” over the past several months.
However, as of last week, Google has been downgraded to a “sell.” It’s not surprising, considering that Google’s buying pressure has weakened to the point where the stock earns a “D” for its Quantitative Grade.
Google’s fundamental metrics are rather lackluster as well. While Google’s sales growth and return on equity are performing fairly well, receiving “B” grades, the other six metrics need improvement. Operating margin growth and earnings surprises received “D” grades. In the meantime earnings growth, earnings momentum, analysts’ earnings revisions and cash flow receive mediocre “C” grades. Overall Google earns a “C” for its total Fundamental Grade.
As of this posting, Google is a “D-rated sell.”
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
