U.S. Markets closed
  • S&P Futures

    4,281.00
    -5.50 (-0.13%)
     
  • Dow Futures

    33,952.00
    -29.00 (-0.09%)
     
  • Nasdaq Futures

    13,508.00
    -15.25 (-0.11%)
     
  • Russell 2000 Futures

    1,996.30
    -5.40 (-0.27%)
     
  • Crude Oil

    90.38
    -0.12 (-0.13%)
     
  • Gold

    1,769.00
    -2.20 (-0.12%)
     
  • Silver

    19.33
    -0.14 (-0.71%)
     
  • EUR/USD

    1.0081
    -0.0011 (-0.11%)
     
  • 10-Yr Bond

    2.8800
    -0.0130 (-0.45%)
     
  • Vix

    19.56
    -0.34 (-1.71%)
     
  • GBP/USD

    1.1919
    -0.0014 (-0.12%)
     
  • USD/JPY

    136.1700
    +0.3080 (+0.23%)
     
  • BTC-USD

    22,807.63
    -649.02 (-2.77%)
     
  • CMC Crypto 200

    542.55
    -15.18 (-2.72%)
     
  • FTSE 100

    7,541.85
    +26.10 (+0.35%)
     
  • Nikkei 225

    28,964.95
    +22.81 (+0.08%)
     

Alphabet (GOOGL) Gains But Lags Market: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Alphabet (GOOGL) closed the most recent trading day at $113.88, moving +0.06% from the previous trading session. This change lagged the S&P 500's 0.59% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Heading into today, shares of the internet search leader had gained 2.03% over the past month, outpacing the Computer and Technology sector's loss of 12.83% and lagging the S&P 500's gain of 7.25% in that time.

Alphabet will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2022. The company is expected to report EPS of $1.30, down 4.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $57.85 billion, up 13.54% from the prior-year quarter.

GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $5.44 per share and revenue of $244.62 billion. These results would represent year-over-year changes of -3.03% and +15.35%, respectively.

It is also important to note the recent changes to analyst estimates for Alphabet. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.63% lower. Alphabet currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Alphabet has a Forward P/E ratio of 20.92 right now. Its industry sports an average Forward P/E of 20.92, so we one might conclude that Alphabet is trading at a no noticeable deviation comparatively.

Also, we should mention that GOOGL has a PEG ratio of 1.13. 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 1.57 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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