Alphabet delivered impressive Q3 2024 results, reporting a 37% year-over-year increase in EPS to $2.12 and a 15% revenue growth to $88.3B. Despite underperforming peers like Meta, Apple, and Amazon in total 12-month returns, Alphabet’s attractive valuation (P/E [FWD] Ratio of 21.79) and robust growth metrics (EPS Diluted Growth Rate [FWD] of 24.04%) make it a compelling investment choice.

Key strengths include Alphabet’s strong financial health (EBIT Margin [TTM] of 31.03%, ROE of 30.87%), competitive advantages in AI and online advertising, and potential for dividend growth. These factors bolster its inclusion as the second-largest position in my private portfolio and 1.52% of The Dividend Income Accelerator Portfolio.

While Alphabet’s reliance on advertising remains a risk, diversification efforts in cloud services and AI mitigate long-term concerns. Investors are advised to set an allocation limit of 5% to manage concentration risk. Alphabet’s undervaluation and growth potential affirm its strong buy rating, making it a cornerstone for achieving long-term investment results. Read More on Seeking Alpha.