Alphabet (GOOGL) ended the recent trading session at $333.25, demonstrating a +1.62% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.5%. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw an increase of 0.43%.
The internet search leader's shares have seen an increase of 4.6% over the last month, surpassing the Computer and Technology sector's loss of 0.15% and the S&P 500's gain of 0.18%.
The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. The company is slated to reveal its earnings on February 4, 2026. On that day, Alphabet is projected to report earnings of $2.58 per share, which would represent year-over-year growth of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $94.69 billion, up 16.01% from the prior-year quarter.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $10.57 per share and revenue of $340.35 billion. These results would represent year-over-year changes of +31.47% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for Alphabet. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.02% higher. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).
Investors should also note Alphabet's current valuation metrics, including its Forward P/E ratio of 29.69. This signifies a premium in comparison to the average Forward P/E of 17.43 for its industry.
One should further note that GOOGL currently holds a PEG ratio of 1.81. 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 1.79.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% of all 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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