Alphabet Trades for 17 Times Earnings. The S&P 500 Trades for 25 Times Earnings. Is This the Best Stock to Buy in the Market?
By newsfeedback@fool.com (Keithen Drury)
Read original article on Motley FoolSometimes the market values fantastic stocks at low prices, just like it appears to be doing with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) right now.
Recently, Alphabet traded for just 17 times earnings, while the S&P 500 (SNPINDEX: ^GSPC) trades for 25 times earnings. That's an incredible mismatch, and it may convince investors that they need to load up on every Alphabet share they can get their hands on, especially with how well the business is doing.
But as is the case with a lot of things, there's more to this story, and investors need to be aware before scooping up shares just because one metric says it looks far cheaper than the broader market.
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