GoogL is a historic outperformer in July
With the first half of the year looking back and another quarter, many on Wall Street are wondering about the future of big tech. While the tech-heavy Nasdaq (IXIC) traded inches from an all-time high, many major players, including Apple (AAPL) and Amazon.com (AMZN), posted lackluster returns in the first half of the year, such as rotation from “growth stocks”.
A member of the FAANG room who refused Big cap secret, but it is Alphabet Inc (NASDAQ: GoogL). Shares hit nearly 40% in 2021, just lining up their longest quarterly winning streak ever, marking their fifth straight win with a return of 18.4%.
The seasonality suggests that the FAANG share could also have even more upside potential, according to data from Schaeffer’s Senior Quantitative Analyst Rocky White. The stock just landed on White’s top performing S&P 500 list that goes back 10 years in July. In fact, the security has generated positive monthly returns nine times out of ten over that period, with an average popup of 9% – by far the best monthly return on the list. Today the stock is up 0.4% at $ 2,433.01, but a move of a similar magnitude would bring it to $ 2,651.98 by the end of the month – a new record for the tech name.
Alphabet stock really isn’t far from exploring uncharted territory, although there has been some consolidation since mid-June near the $ 2,460 level, which is just south of the stock’s all-time high of $ 2,461.91. There’s plenty of tech support out there too, including the 20-day moving average, which seems to be containing most of today’s pullback.
For those who want to speculate on GOOGLE’s heavy seasonality without the steep price tag, options might be the way to go. The security’s Schaeffer’s Volatility Index (SVI) of 18% is above just 4% of its values over the past 12 months, suggesting that options traders have rarely priced in lower volatility expectations in the past 12 months. In addition, the Schaeffer’s Volatility Scorecard (SVS) ranks 76 out of a possible 100. This means Alphabet stock tends to exceed those volatility expectations – a boon for buyers.