In this era of extreme cyber culture, the Internet represents a whole new world, where the virtual has become real. While we carry the world in our pocket, thanks to the smart phone and other hi tech devices, can we at all conceive of daily life without the presence of Google Inc. (GOOGL - Analyst Report)?

Co-founders Larry Page and Sergey Brin have already proved this point beyond debate, but does their stock reflect the same essentiality to investors? Of course it has, with its ridiculously impressive 1,154% gain in 11 years on the public market, cheering investors and generally keeping spirits up.

Google's gains are indeed staggering. But is it the sole star in the firmament setting benchmarks for others to try and emulate? Historically, there are a number of stocks in the equity universe which are in neck-to-neck competition with Google. However, their products, though serviceable and important, lack the glamour to be in the limelight, and have thus eluded attention. It’s time we dig into some eyebrow-raising facts.

Google to Alphabet
 
Any indication of slowing down?

When Jim Cramer asserts about Google that “profitability is up to them and their destiny is in their control,” we jump up from our chairs and go for this expensive bid. We’re all the more confident of Google’s mass rebranding as Alphabet which is now being talked about as the tech version of Warren Buffett’s insurance-focused conglomerate Berkshire Hathaway.

Of course, there are similarities with respect to management structure, low debt level and capital deployment policy. However, a glaring difference lies in the fact that while the Buffett mantra is in investing into good stocks that generate a present stream of income, Alphabet is all about investing in the future with hardly any current cash flow.

And that is not all. There are many other reasons which might make an investor think beyond Google at present. Even with an ever growing array of services and diversification, Google is still very much dependent on its core search-advertising business. According to a Fortune article, “Google’s co-founders are trying to put the cool back into their company by renaming it Alphabet. Too bad their bread and butter still comes from the decidedly unhip advertising business.”

This certainly provides food for another ‘doubtful’ thought. Google has witnessed considerable slowdown in advertising revenue over the last few years with ad-rate falling consistently. With people moving to the Android version of Google search that has minimum space for advertising and using apps like ad blockers, the company has found the road uphill. Moreover, Facebook’s rise as a prominent advertising platform, especially in the field of online video advertising, has put considerable pressure on this search giant.

And how can we forget about the series of fancy discoveries by Google which include Internet balloon, driver-less car, Google glass and so many other things that have stretched the company’s R&D spending to ridiculous limits. According to a Wall Street Journal report, many of these projects have not as yet succeeded in generating significant revenues.

On top of it, the company’s growth prospects don’t look that impressive as suggested by a Zacks Growth Style Scoreof ‘C.’ (Click here to know about Zacks Style Scores)

4 Stocks to Consider Beyond Google

The shares of Google still have some upside potential as indicated by its Zacks Rank #2 (Buy). However, in light of the shortcomings, we have shortlisted four stocks that have outperformed Google since its IPO and still have impressive growth prospects.

All these stocks have a Zacks Rank of #1 (Strong Buy) or #2 and a Growth Style Score of ‘A’ or ‘B.’ 

Gilead Sciences Inc. (GILD - Analyst Report)

This leading biopharmaceutical company has successfully continued with its work in advance patient care under life-threatening diseases worldwide. Gilead's product portfolio and pipeline of investigational drugs are extremely impressive with treatments for HIV/AIDS, HCV, liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions.

Gilead has appreciated 1,157% since Google started its journey in the stock market. This Zacks Rank #1 company boasts a Growth Style Score of ‘B’ and is expected to grow at a rate of 51.58% this year (compared with the industry growth rate of 5.6%). Projected sales growth is also impressive at 25.05% (9.02%). Moreover, positive earnings estimate revisions over the last two months should get reflected in the stock price.
 
Regeneron Pharmaceuticals, Inc. (REGN - Analyst Report)

This Tarrytown, NY-based biopharmaceutical company works on medicines for the treatment of serious medical conditions. The company’s commercialized medicines, which are popular in the market, are for eye diseases, high LDL cholesterol and a rare inflammatory condition. It currently has candidates in development in other areas of high unmet medical need, including oncology, rheumatoid arthritis, asthma and atopic dermatitis.

Regeneron witnessed a stupendous 5,961% growth in the same period, which is more than 5 times Google’s performance. Investors can count on the stock because it has the top combination – a Growth Style Score of “A” and a Zacks Rank #1. For the current year, the company has a year-over-year EPS growth estimate of 29.86%, compared with the industry average of 5.6%. Positive earnings estimate revisions over the past couple of months are encouraging too.

Intuitive Surgical, Inc. (ISRG - Analyst Report)

Based in Sunnyvale, CA, this leading medical device company is rapidly growing in the emerging field of robot-assisted minimally invasive surgery. The company’s da Vinci surgical system enables minimally invasive surgery that avoids the trauma faced by patients in open surgery. This has a huge market potential.

The stock has moved a remarkable 1,956.5% in the same period. With a Zacks Rank #2, Intuitive Surgical has an ROE of 15.2%. Further, it has a Growth Style Score of ‘B.’ Positive earnings estimate revisions over the past couple of months show promise. The company’s sales are projected to grow by 10.3% this year, which is a lot more than the 5.9% growth that is expected for the industry as a whole.

Amazon.com Inc. (AMZN - Analyst Report)

No need to introduce this e-commerce giant. Although Amazon started with books, the company rapidly diversified into a host of other product categories. Amazon is currently working on rapid business expansion across the globe.
 
Amazon has raised a formidable 1,185% since Google’s IPO. The company expects earnings growth of 378.9% for the current year, compared to industry average of mere 17.6%. The growth potential of this Zacks Rank #1 stock is further emphasized by its Growth Style Score of ‘A.’

Why Looking Beyond Google Makes Sense

Google is without a doubt the world’s leading search engine, which still has the largest share of digital ad spends globally. However, if growth rates start to slow down, Google might fall behind. On the other hand, the four stocks that we suggested for your consideration have proved their mettle even in an extremely volatile environment and hold greater potential ahead. 

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