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Alphabet Inc. (GOOG) Stock Moves -0.56%: What You Should Know

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Alphabet Inc. (GOOG - Free Report) closed the most recent trading day at $95.31, moving -0.56% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.

Heading into today, shares of the company had lost 2.91% over the past month, lagging the Computer and Technology sector's gain of 0.89% and the S&P 500's gain of 0.89% in that time.

Alphabet Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alphabet Inc. to post earnings of $1.20 per share. This would mark a year-over-year decline of 21.57%. Meanwhile, our latest consensus estimate is calling for revenue of $63.23 billion, up 2.15% from the prior-year quarter.

GOOG's full-year Zacks Consensus Estimates are calling for earnings of $4.68 per share and revenue of $234.01 billion. These results would represent year-over-year changes of -16.58% and +10.35%, respectively.

Investors might also notice recent changes to analyst estimates for Alphabet Inc.These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 Inc. currently has a Zacks Rank of #4 (Sell).

Investors should also note Alphabet Inc.'s current valuation metrics, including its Forward P/E ratio of 20.48. Its industry sports an average Forward P/E of 20.46, so we one might conclude that Alphabet Inc. is trading at a premium comparatively.

Meanwhile, GOOG's PEG ratio is currently 1.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.82 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 136, putting it in the bottom 47% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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