We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alphabet (GOOGL) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Alphabet (GOOGL - Free Report) closed at $2,933.74 in the latest trading session, marking a -0.82% move from the prior day. This change lagged the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the internet search leader had gained 1.63% over the past month, lagging the Computer and Technology sector's gain of 3.66% and the S&P 500's gain of 4.4% in that time.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. The company is expected to report EPS of $26.71, up 19.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $59.3 billion, up 27.71% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $108.29 per share and revenue of $209.34 billion. These results would represent year-over-year changes of +84.76% and +39.8%, respectively.
Investors might also notice recent changes to analyst estimates for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alphabet is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 27.32. For comparison, its industry has an average Forward P/E of 26.44, which means Alphabet is trading at a premium to the group.
Investors should also note that GOOGL has a PEG ratio of 1.06 right now. 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 was holding an average PEG ratio of 3.71 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alphabet (GOOGL) Dips More Than Broader Markets: What You Should Know
Alphabet (GOOGL - Free Report) closed at $2,933.74 in the latest trading session, marking a -0.82% move from the prior day. This change lagged the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the internet search leader had gained 1.63% over the past month, lagging the Computer and Technology sector's gain of 3.66% and the S&P 500's gain of 4.4% in that time.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. The company is expected to report EPS of $26.71, up 19.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $59.3 billion, up 27.71% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $108.29 per share and revenue of $209.34 billion. These results would represent year-over-year changes of +84.76% and +39.8%, respectively.
Investors might also notice recent changes to analyst estimates for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alphabet is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 27.32. For comparison, its industry has an average Forward P/E of 26.44, which means Alphabet is trading at a premium to the group.
Investors should also note that GOOGL has a PEG ratio of 1.06 right now. 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 was holding an average PEG ratio of 3.71 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.