Google Inc (GOOG): This ‘Forever’ Stock Is The Most Innovative Mega-Cap in Technology

Google is also pioneering the charge in driverless technology. This may sound like science fiction, but Google estimates that its self-driving cars can eliminate 90% of accidents per year, saving more than 30,000 lives and $400 billion in accident-related expenses. Although Google’s driverless car is years away from potential commercialization, it’s another example of how the company is developing game-changing technologies in huge growth markets.

But Google’s portfolio of products and services doesn’t end there: The company also owns a proprietary Web browser in Chrome, the second-largest search engine in the world in YouTube, document-sharing programs with Google Docs and online payment systems with Google Wallet.

Google will also have plenty of support from its powerhouse financial profile, with cash and equivalents of $50 billion and just $3 billion in long-term debt. That gives Google Inc (NASDAQ:GOOG) plenty of flexibility to invest in research and development and buy smaller competitors.

As you can see, Google is a diversified technology company that offers targeted exposure to some of the most bullish trends in the industry. That has analysts expecting big things for a company of Google’s size: expected earnings growth of 13% in 2013 and 16% in 2014. In the next five years, analysts are projecting annual earnings growth of 16%.

Risks to Consider: Google is making big investments in high-risk projects like Google Glass, Google Fiber and the driverless car. Those new products and services require big capital investments before being able to evaluate profitability in commercialization.

Action to Take –> Google is the rare mega-cap in technology that continues to produce groundbreaking innovations in high-growth markets. But in spite of the company’s impressive product portfolio and dominance in multiple segments of technology, Google’s forward P/E (price-to-earnings) ratio of 23 times is in line with its peer average of 22.5 times.

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