Why Alphabet (GOOGL) is a Top Momentum Stock for the Long-Term

Zacks Investment Research highlights Alphabet (GOOGL) as a compelling momentum stock, currently holding a Zacks Rank of #3 (Hold) with a VGM Score of A. GOOGL's shares are up 2.9% in the last four weeks, supported by a Momentum Style Score of A and upward earnings estimate revisions from 15 analysts for fiscal year 2025, increasing the consensus estimate to $9.47 per share; GOOGL also boasts an average earnings surprise of 14.6%.

Analysis

Alphabet (GOOGL), designated with a Zacks Rank #3 (Hold), nonetheless presents compelling characteristics for momentum-oriented investors, highlighted by its Momentum Style Score of A and an overall VGM Score of A. This is supported by a 2.9% increase in its share price over the past four weeks. Significantly, fiscal 2025 earnings estimates have seen positive revisions from 15 analysts in the last 60 days, elevating the Zacks Consensus Estimate by $0.56 to $9.47 per share. Furthermore, Alphabet has a strong history of outperforming earnings expectations, with an average positive earnings surprise of 14.6%. While the #3 Rank suggests a neutral near-term outlook according to the Zacks system, the A-grade Style Scores are indicative of potential upside, a factor Zacks itself advises considering for Hold-rated stocks. Alphabet's diversification beyond its dominant search business, where it holds over 94% market share, into high-growth areas like cloud computing, ad-based video and music streaming, autonomous vehicles, and healthcare, provides a broader context for its market position.

Key Decisions for Investors

• Investors should consider Alphabet's A-grade Momentum and VGM Style Scores, recent share price appreciation of 2.9%, and significant upward revisions in FY2025 earnings estimates as indicators of potential near-term strength, despite its current Zacks #3 (Hold) rating.
• Given the Zacks framework where strong Style Scores on a Hold-rated stock suggest upside potential, investors might evaluate GOOGL for portfolios with a momentum tilt, while closely monitoring for fundamental shifts or analyst sentiment changes that could alter its overall rank.
• The consistent average earnings surprise of 14.6% and the recent increase in the FY2025 Zacks Consensus Estimate to $9.47 per share are key positive fundamental signals that warrant attention, as continued strength in earnings expectations could support further price momentum.