Alphabet (GOOGL) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Alphabet (GOOGL) closed at $2,687.07, marking a -1.09% move from the previous day. This move lagged the S&P 500's daily gain of 0.16%.
Prior to today's trading, shares of the internet search leader had lost 6.13% over the past month. This has lagged the Computer and Technology sector's loss of 4.96% and the S&P 500's loss of 3.32% in that time.
GOOGL will be looking to display strength as it nears its next earnings release. On that day, GOOGL is projected to report earnings of $23.12 per share, which would represent year-over-year growth of 40.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $51.41 billion, up 35.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $101.86 per share and revenue of $205.21 billion, which would represent changes of +73.79% and +37.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GOOGL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. GOOGL currently has a Zacks Rank of #3 (Hold).
Digging into valuation, GOOGL currently has a Forward P/E ratio of 26.67. This represents a discount compared to its industry's average Forward P/E of 27.76.
Investors should also note that GOOGL has a PEG ratio of 1.77 right now. 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. Internet - Services stocks are, on average, holding a PEG ratio of 3.92 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 170, putting it in the bottom 34% 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.
To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.
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