Alphabet (GOOGL) closed at $296.72 in the latest trading session, marking a -3.21% move from the prior day. This change lagged the S&P 500's 1.16% loss on the day. Meanwhile, the Dow experienced a drop of 0.47%, and the technology-dominated Nasdaq saw a decrease of 1.81%.
Shares of the internet search leader witnessed a gain of 7.84% 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 upcoming earnings release of Alphabet will be of great interest to investors. The company's upcoming EPS is projected at $2.58, signifying a 20.00% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $94.26 billion, indicating a 15.49% increase compared to the same quarter of the previous year.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $10.52 per share and revenue of $345.69 billion. These results would represent year-over-year changes of +30.85% and +17.13%, respectively.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. Right now, Alphabet possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is presently being traded at a Forward P/E ratio of 29.15. This represents a premium compared to its industry average Forward P/E of 19.59.
Investors should also note that GOOGL has a PEG ratio of 1.77 right now. 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 industry currently had an average PEG ratio of 1.78 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 84, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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
