Analysts continue to be heavily bullish on Alphabet stock. Of 51 ratings, 47 are Buy or Strong Buy, and the other four are Hold ratings. At a recent price of around $99.00 a share, the upside potential based on a median price target of $124.00 is 25.3%. At the high price target of $160.00, the upside potential is 61.6%.
Fourth-quarter revenue is forecast at $76.49 billion, which would be up 10.7% sequentially and by 1.5% year over year. Adjusted EPS are pegged at $1.20 up 12.8% sequentially but down 21.6% year over year. For the full 2022 fiscal year, consensus estimates call for EPS of $4.74, down 15.5%, on revenue of $283.25 billion, up 9.9%.
Alphabet stock trades at about 21.0 times expected 2022 EPS, 1.8.9 times estimated 2023 earnings of $5.27 and 16.1 times estimated 2024 earnings of $6.16. The stock’s 52-week trading range is $83.34 to $151.55. The company does not pay a dividend, and the total shareholder return for the past 12 months is negative 27%.
Amazon
Since falling to a new 52-week in the first week of 2023, shares of Amazon.com Inc. (NASDAQ: AMZN) have added almost 20%. Over the past 12 months, however, shares are down about 31%.
Like Alphabet, Amazon is cutting employees (18,000 of them) as it tries to get costs under control and margins back up. One means of lowering expenses is increased shipping efficiency. Amazon also could offset some expenses with ad sales. Those have been a bright spot for the past several quarters. Perhaps the company will have something good to say about its health care initiatives, as Amazon has spent serious cash trying to gain a foothold in the sector.
Analysts continue to be strongly bullish on Amazon stock. Of 52 ratings, 48 are Buy or Strong Buy, and the other four are Hold ratings. At a price of around $103.00 a share, the upside potential based on a median price target of $134.50 is 30.6%. At the high price target of $210.00, the upside potential is nearly 104%.
Analysts are looking for fourth-quarter revenue of $145.76 billion, up 14.7% sequentially and 6.1% higher year over year. Adjusted EPS are expected to be $0.17, down 38.4% sequentially and lower than $1.39 in the year-ago quarter. For the full 2022 fiscal year, Amazon is expected to post a loss per share of $0.11, down from 2021 EPS of $3.24, on sales of $510.54 billion, up 8.7%.
Amazon stock trades at 64.5 times expected 2023 EPS of $1.60 and 336.2 times estimated 2024 earnings of $2.85 per share. The stock’s 52-week range is $81.43 to $170.83. Amazon does not pay a dividend. Total shareholder return over the past 12 months was negative 31.1%.
Apple
Of all the tech mega-caps, Apple Inc. (NASDAQ: AAPL) is the only one to keep its share price decline under 20%. The share price improved by 11% in January, well behind Meta Platforms (up nearly 24%) and Amazon (22.8%) but close to Alphabet (12%) and well ahead of Microsoft (3.3%). Headwinds include slow demand and production issues in the company’s Chinese assembly plants. Analysts have forecast a year-over-year decline in fiscal first-quarter revenue, something that has not happened to Apple in three years.
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