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Alphabet is the most undervalued big stock, MKM says

Larry Page chief executive officer of Google's parent company, Alphabet Inc.
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Larry Page chief executive officer of Google's parent company, Alphabet Inc.

Alphabet has the most trapped value of all the mega-caps and should provide investors with reliable gains into 2018 and beyond, according to MKM Partners.

Despite 33 percent stock growth in the past 12 months, the parent company of Google is still on track for upward mobility in the next year, wrote MKM analyst Rob Sanderson in a note to clients Thursday.

"The company continues to deliver exceptional growth for a company its size, with an expected $15.5 billion increase in advertising revenue this year and another $15.6 billion next," Sanderson wrote. "We think Alphabet has the most hidden value of all mega-caps with multiple potential vehicles to re-rating, but do not think any are likely in the near-term and expect the stock will trade within its historic range, correlated with its growth rate."