5 Best Forever Stocks to Buy Now

3. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 191

Alphabet Inc. (NASDAQ:GOOGL) is a Mountain View, California-based holding company that owns Google, YouTube, and several other subsidiaries.

In a research note issued on October 4, Justin Post at Bank of America gave Alphabet Inc. (NASDAQ:GOOGL) a target price of $114 and reiterated a Buy rating. In the current uncertain macroeconomic environment, the analyst anticipates the company’s EPS to remain resilient as Alphabet Inc. (NASDAQ:GOOGL) is working on controlling its costs. This is similar to what the company did in 2009 following the financial crisis of 2008. Mr. Post highlighted Alphabet Inc. (NASDAQ:GOOGL) stock as a top-value stock in the tech sector.

Around 90% of Alphabet Inc.’s (NASDAQ:GOOGL) revenue is generated from Google, which has a market share of 84% in the online search segment. Google is likely to sustain its leadership position in the industry in the long run. Alphabet Inc. (NASDAQ:GOOGL) is currently trading at its 10-year low P/E, allowing investors an attractive opportunity to invest in one of the best long-term stocks in the market.

Polen Capital shared its outlook on Alphabet Inc. (NASDAQ:GOOGL) in its Q2 2022 investor letter. Here’s what the firm said:

Alphabet, a large weighting in the Portfolio, was the top detractor during the period, as e-commerce growth slowed during the quarter on tough comps from the prior year. That said, Alphabet continues to deliver robust revenue and profit growth. Google Cloud Platform (GCP) continues to grow at a healthy pace, and we do not believe the share price decline was a reflection of weak business performance.”