In the latest trading session, Alphabet (GOOGL) closed at $176.06, marking a +1.37% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.09% for the day.
The internet search leader's stock has climbed by 13.7% in the past month, exceeding the Computer and Technology sector's gain of 11.17% and the S&P 500's gain of 7.21%.
Market participants will be closely following the financial results of Alphabet in its upcoming release. The company is expected to report EPS of $2.12, up 12.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $78.86 billion, up 10.51% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.47 per share and a revenue of $323.73 billion, representing changes of +17.79% and +9.69%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alphabet. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, there's been a 0.46% rise in the Zacks Consensus EPS estimate. Alphabet is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Alphabet is currently exchanging hands at a Forward P/E ratio of 18.34. This valuation marks a discount compared to its industry's average Forward P/E of 18.47.
Investors should also note that GOOGL has a PEG ratio of 1.11 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GOOGL's industry had an average PEG ratio of 1.36 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 41% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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
