Alphabet (GOOG) closed the most recent trading day at $1,117, moving -1.51% from the previous trading session. This change lagged the S&P 500’s daily loss of 0.69%. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, lost 0.79%.
Heading into today, shares of the internet search leader had lost 4.57% over the past month, outpacing the Computer and Technology sector’s loss of 7.49% and lagging the S&P 500’s loss of 4.53% in that time.
GOOG will be looking to display strength as it nears its next earnings release. In that report, analysts expect GOOG to post earnings of $11.48 per share. This would mark a year-over-year decline of 2.3%. Our most recent consensus estimate is calling for quarterly revenue of $30.90 billion, up 17.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $45.59 per share and revenue of $130.18 billion, which would represent changes of +4.32% and +18.25%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GOOG. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 2.01% higher. GOOG is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that GOOG has a Forward P/E ratio of 24.88 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 27.82.
It is also worth noting that GOOG currently has a PEG ratio of 1.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. GOOG’s industry had an average PEG ratio of 3.22 as of yesterday’s close.
The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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