Does ALPHABET INC-CL A (NASDAQ:GOOGL) meet Peter Lynch’s stock-picking criteria?

Known for his philosophy of investing in what you know, Peter Lynch looked for companies with consistent earnings growth, low debt, and a competitive edge. Does ALPHABET INC-CL A (NASDAQ:GOOGL) meet these key criteria? Let’s find out.

Does ALPHABET INC-CL A (NASDAQ:GOOGL) meet Peter Lynch’s stock-picking criteria?

• In terms of Return on Equity(ROE), GOOGL is performing well, achieving a 30.8% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.
• Maintaining a Debt-to-Equity ratio of 0.03, GOOGL demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• Over the past 5 years, GOOGL has demonstrated 25.25 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With a PEG ratio at 0.86, GOOGL is priced attractively relative to its earnings expansion.
• GOOGL's Debt/Equity ratio of 0.03 suggests a healthy balance between debt financing and shareholder equity.

How does the complete fundamental picture look for NASDAQ:GOOGL?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 8 out of 10 to GOOGL. GOOGL was compared to 71 industry peers in the Interactive Media & Services industry. GOOGL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GOOGL is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make GOOGL suitable for growth and quality investing!

Check the latest full fundamental report of GOOGL for a complete fundamental analysis.

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Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.