Alphabet Inc. (GOOG) closed the latest trading day at $150.01, indicating a +0.31% change from the previous session’s end. The stock fell short of the S&P 500, which registered a gain of 0.45% for the day. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq added 0.84%.
Heading into today, shares of the company had lost 8.79% over the past month, lagging the Computer and Technology sector’s loss of 0.98% and the S&P 500’s gain of 2.54% in that time.
The investment community will be closely monitoring the performance of Alphabet Inc. in its forthcoming earnings report. On that day, Alphabet Inc. is projected to report earnings of $1.83 per share, which would represent year-over-year growth of 18.06%. Meanwhile, the latest consensus estimate predicts the revenue to be $72.78 billion, indicating a 13.62% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.63 per share and a revenue of $292.21 billion, representing changes of +31.55% and +13.92%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Alphabet Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
In the context of valuation, Alphabet Inc. is at present trading with a Forward P/E ratio of 19.59. Its industry sports an average Forward P/E of 29.46, so 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 1.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. GOOG’s industry had an average PEG ratio of 2.1 as of yesterday’s close.
The Internet – Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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