In the latest trading session, Alphabet Inc. (GOOG) closed at $177.63, marking a +1.55% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.09%.
The company's stock has climbed by 13.31% 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%.
The investment community will be paying close attention to the earnings performance of Alphabet Inc. in its upcoming release. The company is predicted to post an EPS of $2.12, indicating a 12.17% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $78.86 billion, up 10.51% from the year-ago period.
GOOG's full-year Zacks Consensus Estimates are calling for earnings of $9.47 per share and revenue of $331.17 billion. These results would represent year-over-year changes of +17.79% and +12.22%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alphabet Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% higher. Alphabet Inc. currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Alphabet Inc. is presently trading at a Forward P/E ratio of 18.47. Its industry sports an average Forward P/E of 18.47, so one might conclude that Alphabet Inc. is trading at no noticeable deviation comparatively.
It is also worth noting that GOOG currently has a PEG ratio of 1.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.36.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 41% of all industries, numbering over 250.
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.
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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