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In the latest trading session, Alphabet Inc. (GOOG) closed at $2,521.60, marking a +1.21% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.47%.
Heading into today, shares of the company had gained 11.27% over the past month, outpacing the Computer and Technology sector's gain of 2.06% and the S&P 500's loss of 0.12% in that time.
GOOG will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $19.63, up 93.78% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $46.17 billion, up 46.08% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $89.46 per share and revenue of $194.39 billion, which would represent changes of +52.64% and +29.81%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GOOG. 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.
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 has moved 1.77% higher. GOOG is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, GOOG is currently trading at a Forward P/E ratio of 27.85. This represents a discount compared to its industry's average Forward P/E of 29.21.
Also, we should mention that GOOG has a PEG ratio of 1.54. 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. The Internet - Services industry currently had an average PEG ratio of 1.9 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 169, putting it in the bottom 34% 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.
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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