The US markets are going through a sell-off phase, especially the S&P 500. In this situation, many are looking for a value stock that's worth buying.
If we look back, many tech giants like Amazon, Tesla, and Nvidia have given impressive returns. In fact, a lot of the shares in the S&P 500 moved higher in hopes that the rates would continue to move lower.
But we all know that what goes higher will eventually come down to earth! That's the dominant theme in 2025 and has led many investors to start looking for a good stock to hold in 2025.
Amidst all of this, experts believe that buying Alphabet (GOOG) is the best option! That's a value share that can help you escape the market sell-off and end the year 2025 with solid returns.
In 2025, the forward P/E ratio of YouTube and Google is 21.8 times. That's a lot lower than the S&P 500's average P/E ratio of 30.
Another thing to note here is that the average P/E for the tech sector of the S&P 500 is 47. On the other hand, Alphabet only has a ratio of 21.8, which makes it a very attractive choice.
It also highlights that while the rest of the tech stocks may struggle, Alphabet will have an easy path towards upside. In fact, GOOG is also a key player in the AI field now which means you can also benefit from the AI boom.
However, there's one thing that makes Alphabet vulnerable, and it's the increasing competition. There are many social media and search engine providers who can pose a challenge to Google.
But as long as the digital economy keeps expanding, there's immense growth potential for Alphabet. Also, the company is involved in a lot of things, such as search, cloud computing, AI, autonomous vehicles, and so on.
Amidst all of this, it is a no-brainer to choose Alphabet (GOOG) from the S&P 500 index.