Alphabet (GOOGL) ended the recent trading session at $166.18, demonstrating a -1.69% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.81%.
Shares of the internet search leader witnessed a gain of 2.94% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 7.05% and the S&P 500's gain of 4.61%.
The upcoming earnings release of Alphabet will be of great interest to investors. The company's upcoming EPS is projected at $2.12, signifying a 12.17% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $78.86 billion, up 10.51% from the prior-year quarter.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $9.47 per share and revenue of $323.73 billion. These results would represent year-over-year changes of +17.79% and +9.69%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alphabet. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. Within the past 30 days, our consensus EPS projection has moved 0.46% higher. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Alphabet is presently trading at a Forward P/E ratio of 17.85. This valuation marks a discount compared to its industry's average Forward P/E of 17.99.
Also, we should mention that GOOGL has a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.35 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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