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Alphabet (GOOGL) Gains As Market Dips: What You Should Know

In the latest trading session, Alphabet (GOOGL) closed at $91.11, marking a +0.53% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 3.16%.

Prior to today's trading, shares of the internet search leader had lost 4.17% over the past month. This has lagged the Computer and Technology sector's loss of 3.13% and was narrower than the S&P 500's loss of 5.39% 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 $1.09, down 11.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $56.89 billion, up 1.56% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.12 per share and revenue of $246.7 billion. These totals would mark changes of +12.28% and +5.48%, respectively, from last year.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.51% lower within the past month. Alphabet is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Alphabet is holding a Forward P/E ratio of 17.7. For comparison, its industry has an average Forward P/E of 24.98, which means Alphabet is trading at a discount to the group.

Investors should also note that GOOGL has a PEG ratio of 1.25 right now. 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. The Internet - Services industry currently had an average PEG ratio of 1.26 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 69, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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Alphabet Inc. (GOOGL) : Free Stock Analysis Report

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