Alphabet has strong growth potential, IBM offers attractive valuation, both rank 'Hold'.

From Nasdaq: 2024-07-22 20:07:00

Tech giants Alphabet and IBM are set to report their Q2 earnings this week. GOOGL has soared 30% this year while IBM has slightly trailed. Alphabet’s Q2 sales are expected to increase 13% to $70.55 billion, with EPS climbing 28% to $1.84. IBM’s Q2 sales are expected to be slightly up to $15.58 billion, with EPS projected to dip by -1%.

In terms of valuation, IBM has a more attractive forward earnings multiple of 18.5X compared to the S&P 500’s 23.2X, while GOOGL stands at 23.3X. Additionally, IBM’s price to sales ratio is more reasonable at 2.7X compared to the benchmark of 5.4X, with GOOGL at 7.5X.

Both Alphabet and IBM’s stocks hold a Zacks Rank #3 (Hold) ahead of their Q2 reports. While Alphabet shows strong growth potential, IBM offers an attractive valuation, making them sound long-term investments in the tech sector. Click below for more insights and special reports on emerging hydrogen energy companies.



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