Stock analysis: Google score places it among top 15% of stocks

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Google Inc.'s current score of 9 places it within the top 15 per cent of stocks scored. The score last changed on June 7, 2015, when it slipped from 10 to 9.

Earnings 5

Google currently has a relatively neutral earnings rating. The average earnings rating for the Internet services industry is 5.9 and the Nasdaq 100 average is 6.3.

Over the past four quarters, the company has reported zero positive, three negative, and one in-line surprises. The average surprise for this time period has been –2.2 per cent. Most recently on April 23, the company reported quarterly earnings of 6.57 per share, relatively in-line with the consensus of 6.60.

Fundamental 10

Google currently has a fundamental rating of 10, which is significantly more bullish than the Internet services industry average of 3.9. The company's net margin has been higher than its industry average for each of the past five years.

Relative Valuation 6

Compared to the Internet services industry, Google is currently trading at a significant discount based on trailing P/E, forward P/E, and forward PEG.

Google's trailing P/E of 26.3 represents a 10 per cent premium to its 5-year average of 24.0.

Risk 10

On days when the market is up, Google tends to perform in-line with the S&P 500 composite index. However, on days when the market is down, the shares generally decrease by more than the S&P 500 index does. Over the past 90 days, the daily price fluctuations of Google have been in-line with the S&P 500.

Price Momentum 5

Performance relatively in-line with the market.

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