In the latest trading session, Alphabet (GOOGL) closed at $1,217.77, marking a +0.17% move from the previous day. This change outpaced the S&P 500's 0.14% loss on the day. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the internet search leader had lost 1.56% over the past month. This has lagged the Computer and Technology sector's loss of 0.36% and the S&P 500's loss of 0.91% in that time.
Investors will be hoping for strength from GOOGL as it approaches its next earnings release, which is expected to be October 28, 2019. In that report, analysts expect GOOGL to post earnings of $12.55 per share. This would mark a year-over-year decline of 3.91%. Our most recent consensus estimate is calling for quarterly revenue of $32.84 billion, up 20.92% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $49.61 per share and revenue of $132.53 billion. These results would represent year-over-year changes of +13.52% and +20.38%, respectively.
It is also important to note the recent changes to analyst estimates for GOOGL. 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.
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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. GOOGL is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note GOOGL's current valuation metrics, including its Forward P/E ratio of 24.5. This valuation marks a discount compared to its industry's average Forward P/E of 27.33.
It is also worth noting that GOOGL currently has a PEG ratio of 1.48. 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 was holding an average PEG ratio of 2.25 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.
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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