Alphabet (GOOGL) dominates FANG stocks ahead of profits
Google’s parent company Alphabet Inc. (GOOGL) easily outperforms other FANG stocks in 2021. Alphabet stock is up 42% from the 23.35% return of Facebook, Inc. (FB), Amazon .com, Inc. (AMZN) 8.99% and -1.56% for Netflix, Inc. (NFLX).
Key points to remember
- Alphabet is expected to release its quarterly results on July 27 as the top performing FANG stock in 2021.
- The company has a habit of beating consensus earnings estimates.
- Since the start of the year, Alphabet stocks have seen a lot of Big Money buys.
Alphabet, close to its all-time highs, is quickly approaching its second quarter earnings report, scheduled for July 27. The logical question that worries everyone: is a beat in the cards?
To answer this, let’s do two things. First, let’s take a look at Alphabet’s recent earnings reports and how the company has performed against expectations. Next, we’ll check the chart and see what Big Money thinks about stocks.
Let’s first take a look at Alphabet’s earnings over the past four quarters and how they stacked up against the consensus. You can see it in the table below:
Do you notice something? In the previous four quarters, Alphabet has beaten estimates. And if you look at the previous two, the company has destroyed the consensus! This is what you want to see.
The pace of the last quarter is probably what drove the current quarter’s estimate of earnings per share from $ 15.50 to $ 19.21 today:
Obviously, the company has hit all cylinders from a profit standpoint. And the share price followed the same trend. They say the trend is your friend. The Big Money Trend is who I am. And it was a higher one-way train in 2021.
How a stock trades is critical. Often times, this can give you an idea of what to expect in the future. This is why, for me, I pay attention to the buying pressure on stocks.
Now I have an exclusive way to track Big Money entering a stock. But to show you a way to visualize it, check out how Alphabet has been accumulating since June.
But more importantly, look at the times when stocks saw Big Money buy. You can see it in the yellow bubbles at the top. These align with significant purchase volumes:
This first bubble occurred on January 20, when GOOGL shares were trading at $ 1,880. The stock is trading at $ 2,533 at the time of this writing.
Let’s keep it simple: don’t fight a strong earnings trend. And don’t fight big buys!
The bottom line
So, let’s finish it all. Alphabet has a habit of beating analysts’ earnings estimates. Don’t be surprised if this is the case this quarter. Additionally, a lot of money appears to be pouring into the stock as it easily outpaces other FANG stocks in 2021. These are bullish signs that there could be more upside in the weeks and months to come.
Disclosure: The author holds long positions in GOOG, GOOGL, and NFLX in personal and managed accounts at the time of publication. He does not hold any positions in FB or AMZN at the time of publication.