How about long term buy?

Screening Filters

1. Market Cap ≥ $50,000,000,000

   • Purpose: Limit results to very large, established companies.
   • Rationale:
     For assessing the long-term potential of Alphabet (a multi‑trillion‑dollar mega‑cap), the most relevant comparisons are other large, mature businesses. Smaller caps have very different risk, volatility, and business dynamics. This filter focuses the universe on companies with scale, diversification, and capital resources comparable to Alphabet—key traits for durable long‑term compounding.

2. Sector ∈ {Communication Services, Software & IT Services, Technology}

   • Purpose: Focus on companies in the same or closely related industries as Alphabet.
   • Rationale:
     Alphabet operates primarily in online advertising, search, cloud computing, and broader tech/AI—areas that straddle Communication Services and Technology. By limiting to these sectors, the screener surfaces businesses with similar growth drivers, regulatory environments, and competitive landscapes. This makes it easier to:
     • Benchmark Alphabet’s growth, profitability, and risk against true peers.
     • Identify whether Alphabet is stronger or weaker than the “quality tech/communications” cohort over the long run.

3. Exchange ∈ {XNYS, XNAS, XASE} (NYSE, NASDAQ, AMEX)

   • Purpose: Restrict to major U.S. exchanges.
   • Rationale:
     Alphabet trades on NASDAQ, and most comparable long-term tech leaders are U.S.-listed on major exchanges. This filter ensures:
     • Better disclosure standards and regulatory oversight.
     • Higher liquidity and institutional ownership. That makes comparisons more meaningful and focuses on stocks accessible and transparent for a long-term investor.

4. Net Margin ≥ 5%

   • Purpose: Ensure companies are consistently profitable.
   • Rationale:
     Long‑term investment potential strongly depends on a company’s ability to generate sustainable profits, not just revenue. Alphabet is known for strong margins; to evaluate it properly, you want peers that:
     • Are not structurally unprofitable.
     • Have business models capable of generating real economic value over time.
       A minimum 5% net margin filters out many high‑risk, speculative growth names and centers on businesses with proven earnings power—crucial for compounding over years or decades.

5. Debt-to-Equity ≤ 1.5

   • Purpose: Exclude companies with excessive leverage.
   • Rationale:
     Alphabet has a very strong balance sheet with modest leverage and large cash reserves. For long-term potential, financial resilience matters greatly, especially through recessions, rate cycles, or tech downturns. Capping debt/equity at 1.5:
     • Screens for companies that are less likely to face distress from high interest burdens.
     • Highlights firms that can keep investing in R&D, AI, and cloud through cycles, like Alphabet.
       This makes the comparison group more “quality biased” and aligned with a durable, long-term investment profile.

6. Revenue 5-Year CAGR ≥ 5%

   • Purpose: Require a baseline of sustained top-line growth.
   • Rationale:
     Long-term potential in a company like Alphabet comes from compounding growth in areas like search, YouTube, cloud, and AI. A 5-year revenue CAGR ≥ 5%:
     • Filters out stagnating or shrinking businesses.
     • Focuses on companies that are still expanding meaningfully, even at large scale.
       This aligns with the core question: can the business continue to grow over many years, supporting earnings and valuation expansion?

Why Results Match:

• The filters collectively target large, profitable, growing, financially sound tech and communication services companies—the same profile as Alphabet.
• They provide a peer group of high‑quality tech/communications leaders that you can use to assess Alphabet’s long-term potential: if Alphabet’s growth, margins, and balance sheet are equal or superior to this already strong cohort, it supports a positive long-term view.
• By excluding small caps, unprofitable firms, highly leveraged names, and slow/no-growth businesses, the screen focuses precisely on the type of durable compounders that long-term investors typically seek—making it directly relevant to evaluating Alphabet’s long-term investment potential.