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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 $2,821.26 in the latest trading session, marking a -1.8% move from the prior day. This change lagged the S&P 500's daily loss of 1.26%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.44%.
Prior to today's trading, shares of the company had gained 13.58% over the past month. This has outpaced the Computer and Technology sector's gain of 8.72% and the S&P 500's gain of 6.07% 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 $25.53 per share, which would represent a year-over-year decline of 2.89%. Our most recent consensus estimate is calling for quarterly revenue of $56.01 billion, up 22.83% from the year-ago period.
GOOG's full-year Zacks Consensus Estimates are calling for earnings of $117.32 per share and revenue of $249.89 billion. These results would represent year-over-year changes of +4.56% and +17.83%, respectively.
It is also important to note the recent changes to analyst estimates for Alphabet Inc.These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 0.4% lower within the past month. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Alphabet Inc. is currently trading at a Forward P/E ratio of 24.49. Its industry sports an average Forward P/E of 23.21, so we one might conclude that Alphabet Inc. is trading at a premium comparatively.
It is also worth noting that GOOG currently has a PEG ratio of 1.23. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.85 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% 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) Dips More Than Broader Markets: What You Should Know
Alphabet Inc. (GOOG - Free Report) closed at $2,821.26 in the latest trading session, marking a -1.8% move from the prior day. This change lagged the S&P 500's daily loss of 1.26%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.44%.
Prior to today's trading, shares of the company had gained 13.58% over the past month. This has outpaced the Computer and Technology sector's gain of 8.72% and the S&P 500's gain of 6.07% 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 $25.53 per share, which would represent a year-over-year decline of 2.89%. Our most recent consensus estimate is calling for quarterly revenue of $56.01 billion, up 22.83% from the year-ago period.
GOOG's full-year Zacks Consensus Estimates are calling for earnings of $117.32 per share and revenue of $249.89 billion. These results would represent year-over-year changes of +4.56% and +17.83%, respectively.
It is also important to note the recent changes to analyst estimates for Alphabet Inc.These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 0.4% lower within the past month. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Alphabet Inc. is currently trading at a Forward P/E ratio of 24.49. Its industry sports an average Forward P/E of 23.21, so we one might conclude that Alphabet Inc. is trading at a premium comparatively.
It is also worth noting that GOOG currently has a PEG ratio of 1.23. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.85 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% 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.