U.S. markets open in 9 hours 9 minutes
  • S&P Futures

    -3.75 (-0.10%)
  • Dow Futures

    -13.00 (-0.04%)
  • Nasdaq Futures

    -8.25 (-0.07%)
  • Russell 2000 Futures

    +0.80 (+0.05%)
  • Crude Oil

    -0.04 (-0.05%)
  • Gold

    -2.70 (-0.16%)
  • Silver

    +0.11 (+0.53%)

    +0.0012 (+0.12%)
  • 10-Yr Bond

    +0.0670 (+1.78%)
  • Vix

    +1.97 (+6.90%)

    +0.0004 (+0.04%)

    -0.1270 (-0.09%)

    -394.95 (-1.94%)
  • CMC Crypto 200

    -7.80 (-1.68%)
  • FTSE 100

    -55.35 (-0.78%)
  • Nikkei 225

    -190.59 (-0.70%)

Alphabet (GOOGL) Dips More Than Broader Markets: What You Should Know

·3 min read

Alphabet (GOOGL) closed the most recent trading day at $106.81, moving -0.96% from the previous trading session. This change lagged the S&P 500's 0.41% loss on the day.

Prior to today's trading, shares of the internet search leader had lost 8.06% over the past month. This has was narrower than the Computer and Technology sector's loss of 9.08% and lagged the S&P 500's loss of 5.13% in that time.

Investors will be hoping for strength from Alphabet as it approaches its next earnings release. The company is expected to report EPS of $1.25, down 10.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $58.46 billion, up 9.02% from the prior-year quarter.

GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $5.20 per share and revenue of $237.04 billion. These results would represent year-over-year changes of -7.31% and +11.77%, respectively.

Investors might also notice recent changes to analyst estimates for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% lower. Alphabet is currently a Zacks Rank #3 (Hold).

In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 20.75. For comparison, its industry has an average Forward P/E of 20.7, which means Alphabet is trading at a premium to the group.

Investors should also note that GOOGL has a PEG ratio of 1.75 right now. 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 industry currently had an average PEG ratio of 2.14 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 90, putting it in the top 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research