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Alphabet Inc. (GOOG) Gains As Market Dips: What You Should Know

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Alphabet Inc. (GOOG) closed the most recent trading day at $2,282.74, moving +0.09% from the previous trading session. This change outpaced the S&P 500's 0.75% loss on the day. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq added 0.24%.

Prior to today's trading, shares of the company had lost 3.46% over the past month. This has lagged the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.32% in that time.

Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release. On that day, Alphabet Inc. is projected to report earnings of $26.66 per share, which would represent a year-over-year decline of 2.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.17 billion, up 14.18% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $112.46 per share and revenue of $245.69 billion. These totals would mark changes of +0.23% and +15.85%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Alphabet Inc.Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. Alphabet Inc. is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Alphabet Inc.'s current valuation metrics, including its Forward P/E ratio of 20.28. This represents a premium compared to its industry's average Forward P/E of 20.26.

We can also see that GOOG currently has a PEG ratio of 1.07. 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 1.56 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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.

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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