It was announced earlier this week that Google Inc (NASDAQ:GOOG) has surpassed Exxon Mobil Corporation (NYSE:XOM) and will now take its place as the second most valuable company in the world! Analysts have been watching Google carefully from when it started trading on the public markets at $85 per share to the current trading price of $1,144. From its IPO, analysts had great hopes in GOOG, and they sure did not disappoint!
Back in October 2013, analysts made recommendations about GOOG following positive Q3 results and the successful breach of $1000 per share. Several top analysts weighed in with a BUY rating, including Deutsche Bank analyst Ross Sandler. Ross argued that he saw, “several catalysts including: 1) revenue from Enhanced Campaigns, Local, Mobile, and Display/YouTube continuing to drive accelerating growth, 2) easy comps in network, and 3) improving margins as the company comps Nexus and accounting policy changes.” At the time, Ross was ranked 214 out of 2230 analysts and had a 4.8% average return over S&P-500.
Ross’s BUY Google Inc (NASDAQ:GOOG) recommendation was correct and earned him +22.9% over S&P-500. Ross’ series of successes caused his rank to soar to the number 69 spot out of 2380 analysts and he currently has a 5.1% average return over S&P-500.
Analyst Eric Sheridan of UBS also recommended BUY Google Inc (NASDAQ:GOOG) on October 18, 2013, explaining that, “Google is quickly developing into a digital powerhouse.” He ended up with +1.1% over S&P-500 and is currently ranked 104 out of 2380 analysts with a 5.0% average return over S&P-500.
Another top ranked analyst, Robert Peck from Sun Trust, also received a positive return following his BUY Google Inc (NASDAQ:GOOG) recommendation from September 19, 2013, where he pointed out “the incredible optionality Google offers”. Robert was ranked 146 out of 2230 analysts at the time of his recommendation and earned +15.9% over S&P-500 with this advice. He is now ranked 13 out of 2380 analysts.
In the months following these BUY recommendations, Google was praised as being “a must own stock for 2014? and was noted as “an unyielding and dominant market share in online search, an innovative platform in technology, coupled with low competitive risks and diminishing regulatory concerns.” Google even proved its unique position as a company trying to connect everyone and everything with its purchase of the smart thermostat company, Nest. While expensive, many analysts feel that “Nest will prove to be worth the cost and fit well within Google Inc (NASDAQ:GOOG)’s vision connecting the world’s information.”
These analysts were right on the money when they recommended to BUY GOOG, earning positive returns within three months following their financial advice. These analysts also climbed up the analyst rankings and earned higher average return statistics, in part, due to their successful advice to BUY Google Inc (NASDAQ:GOOG). Now that you see their success, will you trust them to help you make your next financial decision?
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