Many investors may feel like they've missed the boat this year. In a brutal 2022, when the Nasdaq Composite fell more than 30%, investors may have been spooked into heavier bond allocations in their portfolios (and less allocation toward stocks). Though a move like that may have felt wise at the time, it's likely led to massive market underperformance this year as the Nasdaq Composite has risen 34% year to date.

And investors who bailed out of stocks may be frustrated about the prices they have to pay to get back in the game. Many tech giants' stocks, for instance, have soared. Case in point: (NASDAQ: GOOG)(NASDAQ: GOOGL) shares have risen 54% year to date. But that doesn't mean it's too late to invest. The Google parent company is a good example of one stock that is still attractive -- even after a jaw-dropping year-to-date return.

The case for why Alphabet stock is fundamentally undervalued is pretty straightforward. The stock currently trades at just 22 times analysts' average estimate for the stock's earnings over the next 12 months. This is only a slight premium to the S 500's forward price-to-earnings ratio of 20, even though Alphabet boasts a lucrative business model, is a clear market leader in online search, has strong top- and bottom-line growth prospects, and benefits from one of the best balance sheets in the S 500 index. Alphabet boasts $118 billion in cash, cash equivalents, and short-term investments versus just $12 billion in long-term debt.

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Source Fool.com