Alphabet (GOOGL) ended the recent trading session at $252.06, demonstrating a +1.01% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.48%. Elsewhere, the Dow saw an upswing of 0.27%, while the tech-heavy Nasdaq appreciated by 0.94%.
Prior to today's trading, shares of the internet search leader had gained 25.19% outpaced the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 2.46%.
Market participants will be closely following the financial results of Alphabet in its upcoming release. On that day, Alphabet is projected to report earnings of $2.32 per share, which would represent year-over-year growth of 9.43%. Meanwhile, the latest consensus estimate predicts the revenue to be $84.53 billion, indicating a 13.39% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.98 per share and a revenue of $334.62 billion, signifying shifts of +24.13% and +13.38%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.18% fall in the Zacks Consensus EPS estimate. Alphabet currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Alphabet is at present trading with a Forward P/E ratio of 25.01. This valuation marks a discount compared to its industry average Forward P/E of 25.04.
It is also worth noting that GOOGL currently has a PEG ratio of 1.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.68 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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