Alphabet (GOOGL) Stock Falls Amid Market Uptick: What Investors Need to Know

The latest trading day saw Alphabet (GOOGL) settling at $188.98, representing a -0.03% change from its previous close. Read More...

Alphabet (GOOGL) ended the recent trading session at $188.98, demonstrating a -0.03% swing from the preceding day’s closing price. The stock’s change was less than the S&P 500’s daily gain of 0.07%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the internet search leader had gained 8.01% over the past month, lagging the Computer and Technology sector’s gain of 8.61% and outpacing the S&P 500’s gain of 4.34% in that time.

The upcoming earnings release of Alphabet will be of great interest to investors. The company is predicted to post an EPS of $1.84, indicating a 27.78% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $70.55 billion, up 13.67% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.60 per share and revenue of $291.26 billion, which would represent changes of +31.03% and +13.55%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Alphabet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Alphabet is holding a Forward P/E ratio of 24.86. This denotes a premium relative to the industry’s average Forward P/E of 23.56.

We can additionally observe that GOOGL currently boasts a PEG ratio of 1.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Internet – Services stocks are, on average, holding a PEG ratio of 2.13 based on yesterday’s closing prices.

The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% of all 250+ industries.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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