This article is an excerpt from “Here Are Barron’s 10 Top Stocks for the New Year,” published on Dec. 16, 2022. To see the full list, click here.
Google parent Alphabet ‘s (ticker: GOOG) stock dropped 34% in 2022 as revenue growth slowed and investors worried about weaker search-advertising trends. At a recent $95, the shares now trade for 18 times projected 2023 earnings—a market multiple for a market leader. Alphabet ‘s core price/earnings ratio is even lower, given losses at its Other Bets businesses, including Waymo, a leader in autonomous vehicles.