Alphabet (GOOGL) closed the most recent trading day at $2,765.51, moving -1.14% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 1.23%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Coming into today, shares of the internet search leader had gained 7.75% in the past month. In that same time, the Computer and Technology sector gained 4.45%, while the S&P 500 gained 5.04%.
Investors will be hoping for strength from Alphabet as it approaches its next earnings release. On that day, Alphabet is projected to report earnings of $25.64 per share, which would represent a year-over-year decline of 2.47%. Our most recent consensus estimate is calling for quarterly revenue of $55.83 billion, up 22.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $117.70 per share and revenue of $249.61 billion, which would represent changes of +4.9% and +17.7%, respectively, from the prior year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Alphabet currently has a Forward P/E ratio of 23.77. For comparison, its industry has an average Forward P/E of 23.81, which means Alphabet is trading at a discount to the group.
Meanwhile, GOOGL’s PEG ratio is currently 1.2. 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. Internet – Services stocks are, on average, holding a PEG ratio of 2.39 based on yesterday’s closing prices.
The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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