Alphabet Inc. (GOOG) ended the recent trading session at $146.58, demonstrating a -1.78% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.57%. Elsewhere, the Dow lost 0.84%, while the tech-heavy Nasdaq lost 2.15%.
Shares of the company have depreciated by 11.07% over the course of the past month, outperforming the Computer and Technology sector's loss of 16.01% and the S&P 500's loss of 12.16%.
The upcoming earnings release of Alphabet Inc. will be of great interest to investors. On that day, Alphabet Inc. is projected to report earnings of $2.04 per share, which would represent year-over-year growth of 7.94%. Meanwhile, the latest consensus estimate predicts the revenue to be $75.62 billion, indicating a 11.87% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.91 per share and revenue of $334.02 billion, indicating changes of +10.82% and +13.18%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alphabet Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.2% increase. At present, Alphabet Inc. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet Inc. is presently being traded at a Forward P/E ratio of 16.76. This represents a discount compared to its industry's average Forward P/E of 21.08.
One should further note that GOOG currently holds a PEG ratio of 1.07. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.14.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 135, this industry ranks in the bottom 46% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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. (GOOG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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