We recently published a list of 10 Best Safe Stocks To Buy According to Analysts. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against other best safe stocks to buy according to analysts.
Market Will End 2024 Positively, Strategist Says
Statistically, November and December tend to be great months for stocks. However, with the economic turmoil in question, will stocks end the year on a positive note? On November 30, Quincy Krosby, chief global strategist at LPL Financial, joined Market Domination on Yahoo Finance to discuss her market thesis. Krosby believes that the market will end the year in “positive territory,” assuming that no unexpected or headline events occur moving forward. She also added that portfolio managers will strive to report gains, and will most likely close books before the end of 2024.
Krosby revealed that the market is very “enthusiastic” about the new administration, despite serious concerns over tariffs. She shared that while 2024 has been a solid year for stocks, some moderation is expected in 2025. She also said that the number of earning revisions coming down for the year ahead is evidence of moderation, adding that if the Fed decides to withdraw its easing cycle plan or alter it, the market is going to be “pretty disappointed.”
She stated that in 2025, the market will have greater funding needs, reaching nearly $7.5-8 trillion, and greater uncertainty along with geopolitical risks. However, despite this, the market has been marching higher and navigating through these risks and is expected to continue doing so. Speaking about “waning business pricing power,” Krosby stated that while consumers have been spending, they are looking for “more bargains.” Companies have also been trying to beat tariffs and figure out which areas of the market are going to get more expensive.
Speaking of market uncertainty, Krosby believes how the market unfolds will be crucial and critical. Overall, she shared her bullish stance on industrials, especially names in the defense, building, and defense manufacturing industries. She also added that stocks in the communication sector, especially those with higher dividend offerings, particularly if the Fed easing cycle goes as planned, are going to perform better in the coming year.
While the future of the Fed cycle and inflationary pressures may be uncertain, some stocks have historically been safe to invest in. That said, let’s take a look at the 10 safe stocks to buy according to analysts.
Our Methodology
To come up with the 10 safe stocks to buy according to analysts we consulted multiple reports and also screened for reliable growers using the Finviz stock screener. We compiled an initial list of 30 stocks. We then referred to the 10-year revenue growth rate for each stock and a solid analyst upside, of at least 8%. The 10 safe stocks to buy according to analysts are in ascending order of the analyst upside as of December 9, 2024. We also included the hedge fund sentiment of each stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOGL)
Analyst Upside as of December 9, 2024: 20%
10-Year Revenue Growth Rate: 18.2%
Number of Hedge Fund Holders: 202
Alphabet’s (NASDAQ:GOOGL) ranks third on our list of the safest stocks to buy according to analysts. The company posted solid performance in Q3 2024, driven by its growing demand for search and cloud due to artificial intelligence. The company has also been penetrating the AI sector with significant investments in robust AI infrastructure, top-notch research teams, and a large network of products and platforms.
Aligning with its strategy, Alphabet Inc. (NASDAQ:GOOGL) is ensuring that its existing customers benefit thoroughly from the advent of AI. Recently, the company revealed that new Chromebooks would now come with built-in artificial intelligence features. On the shopping front, Alphabet Inc. (NASDAQ:GOOGL) launched a new artificial intelligence tool to help consumers pick the right products. In addition to that, in an impressive feat, the company’s YouTube total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time.
As of Q3 2024, all products and services with more than 2 billion monthly users use Gemini models. Extending beyond its products, Alphabet Inc. (NASDAQ:GOOGL) is also working to offer Gemini more broadly to developers. Overall, Alphabet Inc. (NASDAQ:GOOGL) is a prominent name in AI and cloud, contributing to its ranking. Analysts are also bullish on the stock and their high price target represents an upside of 40% from current levels.
Overall, GOOGL ranks 3rd on our list of best safe stocks to buy according to analysts. While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.