In the latest trading session, Alphabet (GOOGL) closed at $108.22, marking a -0.66% move from the previous day. This change was narrower than the S&P 500's 0.78% loss on the day. At the same time, the Dow lost 0.88%, and the tech-heavy Nasdaq lost 0.26%.
Heading into today, shares of the internet search leader had lost 5.38% over the past month, lagging the Computer and Technology sector's loss of 4.58% and the S&P 500's loss of 3.4% 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 $1.25 per share. This would mark a year-over-year decline of 10.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.46 billion, up 9.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.20 per share and revenue of $237.04 billion. These totals would mark changes of -7.31% and +11.77%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Alphabet. 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. 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. The Zacks Consensus EPS estimate has moved 0.35% lower within the past month. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 20.96. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 20.96.
Meanwhile, GOOGL's PEG ratio is currently 1.77. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research