In the latest trading session, Alphabet (GOOGL) closed at $250.43, marking a +2.07% move from the previous day. This change outpaced the S&P 500's 0.37% gain on the day. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.71%.
Shares of the internet search leader witnessed a gain of 4.4% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.04%, and outperforming the S&P 500's gain of 4.26%.
Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. The company is expected to report EPS of $2.29, up 8.02% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $84.56 billion, showing a 13.42% escalation compared to the year-ago quarter.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $9.96 per share and revenue of $334.66 billion. These results would represent year-over-year changes of +23.88% and +13.4%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Alphabet. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.34% decrease. At present, Alphabet boasts a Zacks Rank of #3 (Hold).
Investors should also note Alphabet's current valuation metrics, including its Forward P/E ratio of 24.64. This signifies a discount in comparison to the average Forward P/E of 24.7 for its industry.
One should further note that GOOGL currently holds a PEG ratio of 1.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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