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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 $2,607.44, moving +0.22% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.19%.
Prior to today's trading, shares of the company had lost 11.59% over the past month. This has lagged the Computer and Technology sector's loss of 10.69% and the S&P 500's loss of 5.39% in that time.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release, which is expected to be February 1, 2022. On that day, Alphabet Inc. is projected to report earnings of $26.85 per share, which would represent year-over-year growth of 20.4%. Meanwhile, our latest consensus estimate is calling for revenue of $59.3 billion, up 27.71% from the prior-year quarter.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. Alphabet Inc. currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Alphabet Inc. has a Forward P/E ratio of 22.87 right now. This valuation marks a discount compared to its industry's average Forward P/E of 23.02.
Meanwhile, GOOG's PEG ratio is currently 0.89. 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 2.38 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 194, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 $2,607.44, moving +0.22% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.19%.
Prior to today's trading, shares of the company had lost 11.59% over the past month. This has lagged the Computer and Technology sector's loss of 10.69% and the S&P 500's loss of 5.39% in that time.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release, which is expected to be February 1, 2022. On that day, Alphabet Inc. is projected to report earnings of $26.85 per share, which would represent year-over-year growth of 20.4%. Meanwhile, our latest consensus estimate is calling for revenue of $59.3 billion, up 27.71% from the prior-year quarter.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. Alphabet Inc. currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Alphabet Inc. has a Forward P/E ratio of 22.87 right now. This valuation marks a discount compared to its industry's average Forward P/E of 23.02.
Meanwhile, GOOG's PEG ratio is currently 0.89. 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 2.38 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 194, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.