Alphabet Inc. (GOOG) closed at $94.17 in the latest trading session, marking a -1.48% move from the prior day. This move was narrower than the S&P 500’s daily loss of 1.53%. Elsewhere, the Dow lost 1.72%, while the tech-heavy Nasdaq lost 3.27%.
Prior to today’s trading, shares of the company had lost 7.63% over the past month. This has lagged the Computer and Technology sector’s loss of 1.34% and the S&P 500’s loss of 1.28% in that time.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release. The company is expected to report EPS of $1.09, down 11.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $56.89 billion, up 1.56% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.12 per share and revenue of $246.7 billion, which would represent changes of +12.28% and +5.48%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Alphabet Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 0.61% lower. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 18.67. Its industry sports an average Forward P/E of 25.2, so we one might conclude that Alphabet Inc. is trading at a discount comparatively.
It is also worth noting that GOOG currently has a PEG ratio of 1.32. 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 1.36 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 64, putting it in the top 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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