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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 $2,899.41 in the latest trading session, marking a -1.18% move from the prior day. This change lagged the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.23%.
Prior to today's trading, shares of the company had lost 1.8% over the past month. This has was narrower than the Computer and Technology sector's loss of 2.28% and lagged the S&P 500's loss of 0.13% in that time.
Alphabet Inc. will be looking to display strength as it nears its next earnings release. On that day, Alphabet Inc. is projected to report earnings of $26.71 per share, which would represent year-over-year growth of 19.78%. Meanwhile, our latest consensus estimate is calling for revenue of $59.3 billion, up 27.71% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $108.29 per share and revenue of $209.34 billion. These totals would mark changes of +84.76% and +39.8%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. Alphabet Inc. is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 27.09. This represents a premium compared to its industry's average Forward P/E of 26.99.
We can also see that GOOG currently has a PEG ratio of 1.05. 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 3.55 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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.
To follow GOOG in the coming trading sessions, be sure to utilize Zacks.com.
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Alphabet Inc. (GOOG) Dips More Than Broader Markets: What You Should Know
Alphabet Inc. (GOOG - Free Report) closed at $2,899.41 in the latest trading session, marking a -1.18% move from the prior day. This change lagged the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.23%.
Prior to today's trading, shares of the company had lost 1.8% over the past month. This has was narrower than the Computer and Technology sector's loss of 2.28% and lagged the S&P 500's loss of 0.13% in that time.
Alphabet Inc. will be looking to display strength as it nears its next earnings release. On that day, Alphabet Inc. is projected to report earnings of $26.71 per share, which would represent year-over-year growth of 19.78%. Meanwhile, our latest consensus estimate is calling for revenue of $59.3 billion, up 27.71% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $108.29 per share and revenue of $209.34 billion. These totals would mark changes of +84.76% and +39.8%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. Alphabet Inc. is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 27.09. This represents a premium compared to its industry's average Forward P/E of 26.99.
We can also see that GOOG currently has a PEG ratio of 1.05. 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 3.55 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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.
To follow GOOG in the coming trading sessions, be sure to utilize Zacks.com.