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Alphabet Inc. (GOOG) Dips More Than Broader Markets: What You Should Know

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Alphabet Inc. (GOOG - Free Report) closed at $2,830.02 in the latest trading session, marking a -0.79% move from the prior day. This change lagged the S&P 500's daily loss of 0.28%.

Heading into today, shares of the company had lost 1.33% over the past month, lagging the Computer and Technology sector's gain of 0.55% and the S&P 500's loss of 0.56% in that time.

Investors will be hoping for strength from GOOG as it approaches its next earnings release. The company is expected to report EPS of $23.12, up 40.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $51.41 billion, up 35.25% from the prior-year quarter.

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 GOOG. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. GOOG is currently a Zacks Rank #3 (Hold).

Investors should also note GOOG's current valuation metrics, including its Forward P/E ratio of 28.01. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 28.01.

It is also worth noting that GOOG currently has a PEG ratio of 1.85. 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 4.07 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 165, which puts it in the bottom 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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