Alphabet Inc. (GOOG) Rises Higher Than Market: Key Facts

Alphabet Inc. (GOOG) closed the most recent trading day at $176.63, moving +0.39% from the previous trading session. Read More...

In the latest trading session, Alphabet Inc. (GOOG) closed at $176.63, marking a +0.39% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.26%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 0.35%.

The the stock of company has risen by 3.32% in the past month, lagging the Computer and Technology sector’s gain of 6.38% and overreaching the S&P 500’s gain of 3.25%.

The upcoming earnings release of Alphabet Inc. will be of great interest to investors. The company is expected to report EPS of $1.87, up 29.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $70.55 billion, up 13.67% from the year-ago period.

GOOG’s full-year Zacks Consensus Estimates are calling for earnings of $7.69 per share and revenue of $291.26 billion. These results would represent year-over-year changes of +32.59% and +13.55%, respectively.

It’s also important for investors to be aware of any recent modifications to analyst estimates for Alphabet Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. Alphabet Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at valuation, Alphabet Inc. is presently trading at a Forward P/E ratio of 22.87. This indicates a premium in contrast to its industry’s Forward P/E of 22.58.

Also, we should mention that GOOG has a PEG ratio of 1.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The Internet – Services industry currently had an average PEG ratio of 2.02 as of yesterday’s close.

The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.

Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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