Alphabet Inc. (GOOG) ended the recent trading session at $197.07, demonstrating a +1.7% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 2.03%.
The company's stock has climbed by 0.56% in the past month, exceeding the Computer and Technology sector's loss of 2.99% and lagging the S&P 500's gain of 0.81%.
Market participants will be closely following the financial results of Alphabet Inc. in its upcoming release. The company plans to announce its earnings on February 4, 2025. The company is forecasted to report an EPS of $2.12, showcasing a 29.27% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $81.38 billion, indicating a 12.52% growth compared to the corresponding quarter of the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alphabet Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.19% higher. Alphabet Inc. is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet Inc. is currently trading at a Forward P/E ratio of 21.69. Its industry sports an average Forward P/E of 22.78, so one might conclude that Alphabet Inc. is trading at a discount comparatively.
We can additionally observe that GOOG currently boasts a PEG ratio of 1.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.64.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 27% of over 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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