Alphabet (GOOG) closed at $1,146.35 in the latest trading session, marking a -0.63% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.65%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the internet search leader had gained 4.53% over the past month, lagging the Computer and Technology sector's gain of 5.63% and outpacing the S&P 500's gain of 4.11% in that time.
GOOG will be looking to display strength as it nears its next earnings release, which is expected to be July 25, 2019. On that day, GOOG is projected to report earnings of $11.48 per share, which would represent a year-over-year decline of 2.3%. Our most recent consensus estimate is calling for quarterly revenue of $30.90 billion, up 17.76% from the year-ago period.
GOOG's full-year Zacks Consensus Estimates are calling for earnings of $45.59 per share and revenue of $130.18 billion. These results would represent year-over-year changes of +4.32% and +18.25%, respectively.
Investors might also notice recent changes to analyst estimates for GOOG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GOOG currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, GOOG is holding a Forward P/E ratio of 25.3. This valuation marks a discount compared to its industry's average Forward P/E of 28.76.
It is also worth noting that GOOG currently has a PEG ratio of 1.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.84 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 99, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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