Alphabet (GOOGL) closed at $157.04 in the latest trading session, marking a -0.02% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.67%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 0.87%.
The the stock of internet search leader has fallen by 8.1% in the past month, lagging the Computer and Technology sector's loss of 7.99% and the S&P 500's loss of 5.28%.
Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. On that day, Alphabet is projected to report earnings of $2.02 per share, which would represent year-over-year growth of 6.88%. Meanwhile, the latest consensus estimate predicts the revenue to be $75.66 billion, indicating a 11.93% increase compared to the same quarter of the previous year.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $8.92 per share and revenue of $329.94 billion. These results would represent year-over-year changes of +10.95% and +11.8%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.2% higher within the past month. Alphabet is currently a Zacks Rank #3 (Hold).
In the context of valuation, Alphabet is at present trading with a Forward P/E ratio of 17.61. This indicates a discount in contrast to its industry's Forward P/E of 25.03.
Investors should also note that GOOGL has a PEG ratio of 1.13 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 1.32 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 140, this industry ranks in the bottom 44% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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