In the latest trading session, Alphabet (GOOGL) closed at $1,395.11, marking a -0.19% move from the previous day. This change was narrower than the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.03%.
Coming into today, shares of the internet search leader had gained 4.08% in the past month. In that same time, the Computer and Technology sector gained 5.05%, while the S&P 500 gained 3.31%.
Wall Street will be looking for positivity from GOOGL as it approaches its next earnings report date. The company is expected to report EPS of $12.77, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $38.44 billion, up 20.73% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for GOOGL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. GOOGL currently has a Zacks Rank of #2 (Buy).
Investors should also note GOOGL's current valuation metrics, including its Forward P/E ratio of 25.56. For comparison, its industry has an average Forward P/E of 29.63, which means GOOGL is trading at a discount to the group.
We can also see that GOOGL currently has a PEG ratio of 1.53. 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. GOOGL's industry had an average PEG ratio of 2.68 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.
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