In the latest trading session, Alphabet Inc. (GOOG) closed at $109.15, marking a -0.69% move from the previous day. This change was narrower than the S&P 500’s 0.78% loss on the day. Elsewhere, the Dow lost 0.88%, while the tech-heavy Nasdaq lost 0.26%.
Coming into today, shares of the company had lost 5.17% in the past month. In that same time, the Computer and Technology sector lost 4.58%, while the S&P 500 lost 3.4%.
Alphabet Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alphabet Inc. to post earnings of $1.25 per share. This would mark a year-over-year decline of 10.71%. Our most recent consensus estimate is calling for quarterly revenue of $58.46 billion, up 9.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.20 per share and revenue of $237.04 billion. These totals would mark changes of -7.31% and +11.77%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Alphabet Inc.Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 0.35% lower. Alphabet Inc. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Alphabet Inc. is currently trading at a Forward P/E ratio of 21.14. This valuation marks a premium compared to its industry’s average Forward P/E of 20.96.
It is also worth noting that GOOG currently has a PEG ratio of 1.78. 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. The Internet – Services was holding an average PEG ratio of 2.18 at yesterday’s closing price.
The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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