Alphabet (GOOGL) closed at $144.70 in the latest trading session, marking a -1.4% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.57% for the day. Meanwhile, the Dow experienced a drop of 0.84%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
Heading into today, shares of the internet search leader had lost 11.53% over the past month, outpacing the Computer and Technology sector's loss of 16.01% and the S&P 500's loss of 12.16% in that time.
The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. The company's earnings per share (EPS) are projected to be $2.02, reflecting a 6.88% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $75.62 billion, indicating a 11.87% growth compared to the corresponding quarter of the prior year.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $8.92 per share and revenue of $329.6 billion. These results would represent year-over-year changes of +10.95% and +11.68%, respectively.
Investors might also notice recent changes to analyst estimates for Alphabet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.2% higher. Right now, Alphabet possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Alphabet is presently trading at a Forward P/E ratio of 16.46. This denotes a discount relative to the industry's average Forward P/E of 21.08.
It's also important to note that GOOGL currently trades at a PEG ratio of 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. GOOGL's industry had an average PEG ratio of 1.14 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 135, finds itself in the bottom 46% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
