Alphabet Inc. (GOOG) closed at $298.06 in the latest trading session, marking a -3.14% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.16%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.81%.
Shares of the company witnessed a gain of 7.99% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1%, and the S&P 500's gain of 1.03%.
The investment community will be closely monitoring the performance of Alphabet Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.58, reflecting a 20% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $94.26 billion, up 15.49% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.52 per share and a revenue of $340.26 billion, signifying shifts of +30.85% and +15.3%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Alphabet Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. Alphabet Inc. currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Alphabet Inc. is currently being traded at a Forward P/E ratio of 29.26. This signifies a premium in comparison to the average Forward P/E of 19.59 for its industry.
Meanwhile, GOOG's PEG ratio is currently 1.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Services stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 35% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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. (GOOG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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