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Alphabet Inc. (GOOG) Gains But Lags Market: What You Should Know
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Alphabet Inc. (GOOG - Free Report) closed the most recent trading day at $2,930.09, moving +0.04% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.33%.
Prior to today's trading, shares of the company had gained 2.81% over the past month. This has lagged the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 4.32% in that time.
Alphabet Inc. will be looking to display strength as it nears its next earnings release. 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.
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.
Investors should also note any recent changes to analyst estimates for Alphabet Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. 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 remained stagnant within the past month. Alphabet Inc. is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 27.05. For comparison, its industry has an average Forward P/E of 26.3, which means Alphabet Inc. is trading at a premium to the group.
It is also worth noting 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 was holding an average PEG ratio of 3.58 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% 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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Alphabet Inc. (GOOG) Gains But Lags Market: What You Should Know
Alphabet Inc. (GOOG - Free Report) closed the most recent trading day at $2,930.09, moving +0.04% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.33%.
Prior to today's trading, shares of the company had gained 2.81% over the past month. This has lagged the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 4.32% in that time.
Alphabet Inc. will be looking to display strength as it nears its next earnings release. 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.
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.
Investors should also note any recent changes to analyst estimates for Alphabet Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. 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 remained stagnant within the past month. Alphabet Inc. is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 27.05. For comparison, its industry has an average Forward P/E of 26.3, which means Alphabet Inc. is trading at a premium to the group.
It is also worth noting 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 was holding an average PEG ratio of 3.58 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% 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.