In the latest trading session, Alphabet Inc. (GOOG) closed at $2,049.09, marking a +1.1% move from the previous day. The stock outpaced the S&P 500’s daily loss of 1.34%. At the same time, the Dow lost 1.11%, and the tech-heavy Nasdaq lost 2.11%.
Heading into today, shares of the company had lost 2.09% over the past month, outpacing the Computer and Technology sector’s loss of 3.71% and lagging the S&P 500’s loss of 0.11% in that time.
Investors will be hoping for strength from GOOG as it approaches its next earnings release. The company is expected to report EPS of $15.73, up 59.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $42.18 billion, up 25.13% from the year-ago period.
GOOG’s full-year Zacks Consensus Estimates are calling for earnings of $69.05 per share and revenue of $186.53 billion. These results would represent year-over-year changes of +17.81% and +24.56%, respectively.
Any recent changes to analyst estimates for GOOG should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 10.15% 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 29.35 right now. Its industry sports an average Forward P/E of 29.63, so we one might conclude that GOOG is trading at a discount comparatively.
Investors should also note that GOOG has a PEG ratio of 1.65 right now. 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 1.92 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 158, putting it in the bottom 39% 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.
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