Alphabet (GOOGL) closed at $188.51 in the latest trading session, marking a +0.06% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.09%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.1%.
Heading into today, shares of the internet search leader had gained 7.06% over the past month, outpacing the Computer and Technology sector's gain of 3.04% and the S&P 500's loss of 0.29% in that time.
The upcoming earnings release of Alphabet will be of great interest to investors. The company's upcoming EPS is projected at $2.12, signifying a 29.27% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $81.39 billion, indicating a 12.53% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $8.02 per share and a revenue of $294.74 billion, demonstrating changes of +38.28% and +14.91%, respectively, from the preceding 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.24% higher. As of now, Alphabet holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alphabet has a Forward P/E ratio of 23.49 right now. This denotes a discount relative to the industry's average Forward P/E of 23.71.
It is also worth noting that GOOGL currently has a PEG ratio of 1.33. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 2.06.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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