Peter Smith
⬤ Alphabet draws attention because its latest figures reveal brisk profit growth that still leaves the shares priced modestly, the combination that Growth-at-a-Reasonable-Price buyers want. The stock meets every rule Peter Lynch set for GARP - capture expansion while the tag remains sane. The weekly chart shows price rising in step with sturdy business numbers.
⬤ Profit for the past quarter rose about thirty three percent from the same span a year earlier. Across the last five years the line has climbed without a break, each report landing near the forecast. While earnings moved up, the share price traced a clear staircase of higher highs and higher lows and now sits close to three hundred dollars.
⬤ For buyers who want growth yet flinch at steep tags, the stock sells at roughly 26.5 times last year's earnings. Set that multiple beside thirty three percent profit growth plus the result looks modest. History on the chart shows that each earlier spurt in earnings brought price gains without pushing the ratio to reckless ground - that is the GARP zone.
⬤ The point reaches past one ticker. Alphabet carries large weight in tech indexes and growth benchmarks. When a market leader posts strong profit, wears a moderate price tag and charts an orderly rise, optimism spreads through the entire segment. Alphabet now offers a live case of solid books but also calm price action moving together through a long growth stretch.
Peter Smith
