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In the latest trading session, Alphabet (GOOGL) closed at $2,277.84, marking a +0.11% move from the previous day. This change outpaced the S&P 500's 0.75% loss on the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.24%.
Prior to today's trading, shares of the internet search leader had lost 3.04% over the past month. This has lagged the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.32% in that time.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. On that day, Alphabet is projected to report earnings of $26.66 per share, which would represent a year-over-year decline of 2.2%. Our most recent consensus estimate is calling for quarterly revenue of $58.17 billion, up 14.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $112.46 per share and revenue of $245.69 billion, which would represent changes of +0.23% and +15.85%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Alphabet. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. Alphabet is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 20.23. For comparison, its industry has an average Forward P/E of 20.26, which means Alphabet is trading at a discount to the group.
Investors should also note that GOOGL has a PEG ratio of 1.06 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 1.56 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 172, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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