Finding a winning stock is pretty easy if you can see something that Wall Street might not realize. This was the case when we picked Gamestop (GME) , and now we bring you Google (GOOG) as our next stock to surprise Wall Street. We added Google to the Market Flavor Portfolio before earnings this quarter and now we want to share this great stock pick with our readers.

Google is incredibly undervalued compared to its peers and it’s own P/E chart. Google is trading at a P/E ratio of 42 compared to a P/E of 65 for Yahoo, 39 for eBay, and a staggering 106 for Amazon. Also we can see the value in Google by looking at the PEG ratio, which is an incredibly low 1.04 compared to a 2.65 PEG ratio for Yahoo. Google does trade at a higher price to sales ratio then these stocks, but we value the bottom line more then the top line. The top line (sales and P/S) tells us part of the story, but operations tell us the rest of the story. In this case Google has a much higher net profit margin of 29% compared to 9.5% for Yahoo. Wall Street obviously doesn’t get it, Yahoo is trading at a high multiple while they are losing search traffic and experiencing slowing growth. Yahoo might get taken over by Microsoft, which would provide more competition for Google, but Microsoft and Yahoo combined are still 10% short of Google’s search traffic. Even before the potential takeover Yahoo was trading at a P/E ratio of 55!

Google is still dominating the search market and has added numerous new tools to become more of an internet destination. Products such as Gmail, Google Finance, Google News, Google Blog Search, Google Maps, Google Spreadsheets, and the new customizable Google homepage (iGoogle) should help Google overtake Yahoo as the number one visited website (Stats according to Alexa). These new services are only a sample of the great products Google has been producing, each of which has added a new revolutionary aspect to its purpose.

Not only is Google revolutionizing the internet but they are adding new ways to increase revenue. This has been done through partnerships in traditional media. Two of these deals are with EchoStar and Clear Channel Radio. These partnerships allow the potential for Google to implement tracking models to make ad serving through traditional media more efficient.

Google has already become a behemoth but they are going to continue to grow and be successful. Below is a P/E chart for Google. Notice the dropping P/E ratio over time. With the growth at Google we can't imaging the P/E ratio going much lower. That makes now a great time to start a position in Google!