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 Inc. (GOOG) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Alphabet Inc. (GOOG - Free Report) closed at $2,865 in the latest trading session, marking a +0.92% move from the prior day. This move lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.44%.
Coming into today, shares of the company had gained 5.23% in the past month. In that same time, the Computer and Technology sector gained 3.63%, while the S&P 500 gained 4.69%.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release. The company is expected to report EPS of $25.64, down 2.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $55.83 billion, up 22.43% from the prior-year quarter.
GOOG's full-year Zacks Consensus Estimates are calling for earnings of $117.70 per share and revenue of $249.61 billion. These results would represent year-over-year changes of +4.9% and +17.7%, respectively.
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 0.08% lower. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Alphabet Inc. has a Forward P/E ratio of 24.12 right now. For comparison, its industry has an average Forward P/E of 23.04, which means Alphabet Inc. is trading at a premium to the group.
Meanwhile, GOOG's PEG ratio is currently 1.22. 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 2.67 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 187, which puts it in the bottom 27% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alphabet Inc. (GOOG) Gains But Lags Market: What You Should Know
Alphabet Inc. (GOOG - Free Report) closed at $2,865 in the latest trading session, marking a +0.92% move from the prior day. This move lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.44%.
Coming into today, shares of the company had gained 5.23% in the past month. In that same time, the Computer and Technology sector gained 3.63%, while the S&P 500 gained 4.69%.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release. The company is expected to report EPS of $25.64, down 2.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $55.83 billion, up 22.43% from the prior-year quarter.
GOOG's full-year Zacks Consensus Estimates are calling for earnings of $117.70 per share and revenue of $249.61 billion. These results would represent year-over-year changes of +4.9% and +17.7%, respectively.
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 0.08% lower. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Alphabet Inc. has a Forward P/E ratio of 24.12 right now. For comparison, its industry has an average Forward P/E of 23.04, which means Alphabet Inc. is trading at a premium to the group.
Meanwhile, GOOG's PEG ratio is currently 1.22. 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 2.67 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 187, which puts it in the bottom 27% 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.