Alphabet Inc. (GOOGL) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Alphabet (GOOGL)? Shares have been on the move with the stock up 16.3% over the past month. The stock hit a new 52-week high of $303.81 in the previous session. Alphabet has gained 54.7% since the start of the year compared to the 23.2% gain for the Zacks Computer and Technology sector and the 51.1% return for the Zacks Internet - Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 29, 2025, Alphabet reported EPS of $2.87 versus consensus estimate of $2.26 while it beat the consensus revenue estimate by 2.95%.For the current fiscal year, Alphabet is expected to post earnings of $10.52 per share on $340.32 in revenues. This represents a 30.85% change in EPS on a 15.32% change in revenues. For the next fiscal year, the company is expected to earn $10.94 per share on $387.9 in revenues. This represents a year-over-year change of 3.97% and 13.98%, respectively.Valuation MetricsThough Alphabet has recently hit a 52-week high, what is next for Alphabet? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Alphabet has a Value Score of D. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 27.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.6X. On a trailing cash flow basis, the stock currently trades at 30.9X versus its peer group's average of 13.5X. Additionally, the stock has a PEG ratio of 1.69. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Alphabet currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Alphabet passes the test. Thus, it seems as though Alphabet shares could still be poised for more gains ahead.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks