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In the latest trading session, Alphabet (GOOGL) closed at $2,134.31, marking a +0.3% move from the previous day. This change outpaced the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Prior to today's trading, shares of the internet search leader had lost 7.04% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.38% and lagged the S&P 500's loss of 6.69% in that time.
Alphabet will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alphabet to post earnings of $26.55 per share. This would mark a year-over-year decline of 2.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.05 billion, up 13.93% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $111.86 per share and revenue of $245.69 billion. These totals would mark changes of -0.3% and +15.85%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.67% lower. Alphabet is currently a Zacks Rank #3 (Hold).
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 19.02. Its industry sports an average Forward P/E of 19.73, so we one might conclude that Alphabet is trading at a discount comparatively.
Meanwhile, GOOGL's PEG ratio is currently 1. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.35 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% 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.