Alphabet (GOOGL) closed the latest trading day at $164.95, indicating a +1.05% change from the previous session’s end. The stock outperformed the S&P 500, which registered a daily gain of 0.77%. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.87%.
Prior to today’s trading, shares of the internet search leader had gained 3.67% over the past month. This has lagged the Computer and Technology sector’s gain of 6.36% and the S&P 500’s gain of 4.87% in that time.
Market participants will be closely following the financial results of Alphabet in its upcoming release. It is anticipated that the company will report an EPS of $1.83, marking a 18.06% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $72.77 billion, reflecting a 13.61% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.64 per share and a revenue of $292.3 billion, indicating changes of +31.72% and +13.95%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Alphabet. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.07% higher. Alphabet presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 21.37. Its industry sports an average Forward P/E of 36.79, so one might conclude that Alphabet is trading at a discount comparatively.
We can also see that GOOGL currently has a PEG ratio of 1.22. 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. As the market closed yesterday, the Internet – Services industry was having an average PEG ratio of 2.3.
The Internet – Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 41% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Alphabet Inc. (GOOGL) : Free Stock Analysis Report