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

According to Zacks, Alphabet (GOOGL), currently ranked a #3 (Hold), is a potentially strong growth stock, possessing a Growth Style Score of A and forecasting 17.8% year-over-year earnings growth; fifteen analysts have increased fiscal year 2025 earnings estimates in the last 60 days, raising the consensus to $9.47 per share. GOOGL also has a VGM Score of A and an average earnings surprise of 14.6%.

Analysis

Alphabet (GOOGL) is currently rated a #3 (Hold) by Zacks, yet presents compelling growth characteristics. The company holds a top-tier Growth Style Score of A and a VGM Score of A, indicating strong potential across value, growth, and momentum metrics. Specifically, GOOGL is forecasting a significant year-over-year earnings growth of 17.8% for the current fiscal year. This positive outlook is further supported by recent analyst activity; 15 analysts have revised their earnings estimates higher for fiscal 2025 within the last 60 days. Consequently, the Zacks Consensus Estimate for fiscal 2025 earnings per share has increased by $0.56 to $9.47. Additionally, GOOGL has demonstrated a consistent ability to outperform expectations, boasting an average earnings surprise of 14.6%. The company's evolution from a search-engine provider, where it maintains a dominant market share of over 94% in online search volume, to a diversified technology leader in cloud computing, ad-based streaming, autonomous vehicles, and healthcare, underpins its long-term growth narrative. Despite the #3 (Hold) rank, Zacks methodology suggests that stocks with this rank coupled with A or B Style Scores, like GOOGL, can still offer considerable upside potential and warrant inclusion on an investor's short list, particularly for those focused on growth.

Key Decisions for Investors

• Growth-oriented investors should consider Alphabet (GOOGL) due to its A-rated Growth and VGM Style Scores, forecasted 17.8% earnings growth, and positive fiscal 2025 earnings estimate revisions.
• Monitor GOOGL's Zacks Rank; an upgrade from #3 (Hold) could signal increased conviction, while a downgrade would necessitate a re-evaluation of its near-term prospects.
• Factor in the 14.6% average earnings surprise as an indicator of the company's potential to exceed market expectations, though past performance is not a guarantee of future results.