Why Google is a bargain at $600
In fact, investors should keep buying until shares hit $640.
Google (GOOG) reached a high of more than $600 per share today, the first time in nearly two years that the stock has been above $600. Google stock has more than doubled in 2009 after bottoming out at $282.75 in January.
But even at $600, I think Google is a bargain. In fact, I think investors should keep buying until the stock hits $640.
Here's why I'm so bullish on Google.
Part of the reason is that fourth-quarter earnings are right around the corner, and this stock has a great track record of beating Wall Street estimates. The company topped earnings forecasts for each of the past four quarters and has grown its profits steadily in each consecutive period. That's a strong trend of growth that makes me confident Google will continue to succeed.
The icing on the cake is that, in the past 30 days, four analysts have increased their projections for Google's Q4 numbers. This bodes well for the company's next earnings report. If Google reports a big sales surprise or a substantial increase in earnings when it reports in January, shares could gap up considerably. So if you don't own Google, buy it now in anticipation of a strong quarterly report.
Clearly a big sticker price for shares hasn't prevented buyers from jumping into Google. In the tech sector, such high prices aren't that out of the ordinary and many pricey companies continue to do well even though their shares are trading for significantly higher than three figures.
In addition to Google, there are five other pricey tech stocks that I think are worth every penny. See the complete list here and get my "buy below" prices to help you from overpaying as they run up.
As of this writing, Louis Navellier owned shares of Google in personal or client portfolios.
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