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Alphabet (GOOGL) Boasts Earnings & Price Momentum: Should You Buy?

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Alphabet (GOOGL) Boasts Earnings & Price Momentum: Should You Buy?

Zacks Investment Research pitches its Zacks Premium service and a 50-stock Focus List curated to outperform over 12 months by selecting primarily Zacks #1 and #2 ranked names based on earnings-estimate revisions; historically the Focus List outpaced the S&P 500 (2020: 13.85% vs. 9.38%; cumulative returns 2,519.23% vs. 854.95% from Feb. 1996–Mar. 31, 2021). The Zacks Rank—driven by agreement, magnitude, upside and surprise and updated nightly—relies on upward analyst estimate revisions to generate price momentum, which is the core rationale for the Focus List. Spotlighting Alphabet, Zacks added GOOGL on May 19, 2025 at $166.19 (shares up 18.25% to $196.52 since), noting 16 analyst upward revisions to FY2025 estimates in the last 60 days, a $0.41 rise in the consensus to $9.94, an average earnings surprise of 16% and expected FY earnings growth of 23.6%, though Alphabet currently sits at a Zacks #3 (Hold), signaling more mixed conviction despite recent estimate-driven strength.

Analysis

Zacks Investment Research markets its Zacks Premium service and a 50-stock Focus List that it says is curated to outperform over the next 12 months by selecting primarily Zacks #1 and #2 ranked names. The firm highlights historical outperformance—Focus List annualized gain of 13.85% in 2020 versus the S&P 500's 9.38%, and cumulative returns of 2,519.23% versus the S&P's 854.95% for Feb. 1, 1996 through Mar. 31, 2021—as evidence the approach has worked over long windows. The Focus List methodology centers on earnings estimate revisions and the Zacks Rank, which combines Agreement, Magnitude, Upside and Surprise and is updated nightly; Zacks argues rising analyst estimates drive price momentum, making estimate revision flow the primary predictive signal. The article’s sentiment and market-impact metadata are moderately positive (sentiment_score 0.5, market_impact_score 0.28), implying the piece is more promotional/idea-generating than a market-moving disclosure. In the Focus List spotlight, Alphabet (GOOGL) was added on May 19, 2025 at $166.19 and has risen 18.25% to $196.52 since; 16 analysts raised FY2025 estimates in the past 60 days, the Zacks consensus EPS rose $0.41 to $9.94, average earnings surprise is 16% and FY earnings are expected to grow 23.6%. Despite these estimate upgrades and momentum, Alphabet sits at a Zacks #3 (Hold), signaling mixed conviction and underscoring the need to monitor ongoing revision cadence and valuation before increasing exposure.