View photosOversold Stocks Due For A Bounce: Alphabet (GOOG, GOOGL)
Of the widely followed FANG names, one has been significantly more resilient than the others during this late 2018 market sell-off:
>GOOGL). While its FANG peers are 30% or more off their recent highs, GOOG stock is just 20% off its recent high. But, this stock is still in bear market territory with an RSI hovering near oversold territory.
This weakness in GOOG stock should be perceived as an opportunity. This is a secular growth company that has established itself as the backbone of the internet. As such, so long as internet usage picks up globally, Google’s advertising business will continue to grow at a healthy rate. Plus, this company has plenty of additional and new growth drivers through the cloud, autonomous driving, smart home and hardware. Between all these growth catalysts, Alphabet has plenty of growth potential over the next several years. At a multiyear-low 20 forward earnings multiple, GOOG stock isn’t priced for this growth potential.
From a technical standpoint, the $1,000 level is the critical level to watch. The stock has shown resilience around this level before. As such, dips to $1,000 should be viewed as buying opportunities for short-term traders.
As of this writing, Luke Lango was long FB, UAA, NKE, SKX, LULU, AMZN, TGT, NFLX, COST, AAPL, ROKU, and GOOG.
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Source : https://finance.yahoo.com/news/10-oversold-stocks-due-bounce-174300692.html