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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know

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Alphabet (GOOGL) closed the most recent trading day at $2,142.87, moving +1.05% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.22%.

Coming into today, shares of the internet search leader had lost 1.62% in the past month. In that same time, the Computer and Technology sector lost 9.55%, while the S&P 500 lost 10.02%.

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 $26.55 per share, which would represent a year-over-year decline of 2.6%. Meanwhile, our latest consensus estimate is calling for revenue of $58.05 billion, up 13.93% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $111.86 per share and revenue of $245.69 billion, which would represent changes of -0.3% 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. 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 has moved 0.67% lower within the past month. Alphabet is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Alphabet's current valuation metrics, including its Forward P/E ratio of 19.16. This valuation marks a discount compared to its industry's average Forward P/E of 19.7.

We can also see that GOOGL currently has a PEG ratio of 1.01. 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 was holding an average PEG ratio of 1.36 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 202, putting it in the bottom 21% 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.

To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.


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