Alphabet Inc. (GOOG) closed at $311.43 in the latest trading session, marking a +1.39% move from the prior day. This move outpaced the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 1.05%, while the tech-heavy Nasdaq depreciated by 0.92%.
Shares of the company witnessed a loss of 9.3% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 3.21%, and the S&P 500's loss of 0.5%.
Investors will be eagerly watching for the performance of Alphabet Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.76, showcasing a 1.78% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $91.96 billion, reflecting a 20.23% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.6 per share and revenue of $410.04 billion, which would represent changes of +7.31% and +19.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Alphabet Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.91% higher within the past month. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Alphabet Inc. is currently exchanging hands at a Forward P/E ratio of 26.47. Its industry sports an average Forward P/E of 14.47, so one might conclude that Alphabet Inc. is trading at a premium comparatively.
Investors should also note that GOOG has a PEG ratio of 1.8 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 26% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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