In the latest close session, Alphabet (GOOGL) was down 1.37% at $174.36. This change lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.03%.
Coming into today, shares of the internet search leader had gained 0.4% in the past month. In that same time, the Computer and Technology sector gained 5.58%, while the S&P 500 gained 3.94%.
The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. In that report, analysts expect Alphabet to post earnings of $2.12 per share. This would mark year-over-year growth of 12.17%. At the same time, our most recent consensus estimate is projecting a revenue of $78.95 billion, reflecting a 10.65% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.53 per share and a revenue of $326.75 billion, representing changes of +18.53% and +10.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Alphabet. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. At present, Alphabet boasts a Zacks Rank of #3 (Hold).
Investors should also note Alphabet's current valuation metrics, including its Forward P/E ratio of 18.55. This valuation marks a discount compared to its industry average Forward P/E of 20.53.
We can additionally observe that GOOGL currently boasts a PEG ratio of 1.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.52.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 34% echelons 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.
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. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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