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Alphabet (GOOGL) Gains But Lags Market: What You Should Know
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Alphabet (GOOGL - Free Report) closed at $136.92 in the latest trading session, marking a +0.4% move from the prior day. The stock lagged the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.14%.
Prior to today's trading, shares of the internet search leader had gained 5.26% over the past month. This has outpaced the Computer and Technology sector's gain of 1.08% and the S&P 500's loss of 0.73% in that time.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. In that report, analysts expect Alphabet to post earnings of $1.45 per share. This would mark year-over-year growth of 36.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $63.16 billion, up 10.29% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $5.68 per share and revenue of $253.67 billion. These results would represent year-over-year changes of +24.56% and +8.46%, respectively.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. 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.
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, 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 0.05% higher within the past month. Alphabet currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 24.02. Its industry sports an average Forward P/E of 30.27, so we one might conclude that Alphabet is trading at a discount comparatively.
Meanwhile, GOOGL's PEG ratio is currently 1.57. 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 2.2 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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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Alphabet (GOOGL) Gains But Lags Market: What You Should Know
Alphabet (GOOGL - Free Report) closed at $136.92 in the latest trading session, marking a +0.4% move from the prior day. The stock lagged the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.14%.
Prior to today's trading, shares of the internet search leader had gained 5.26% over the past month. This has outpaced the Computer and Technology sector's gain of 1.08% and the S&P 500's loss of 0.73% in that time.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. In that report, analysts expect Alphabet to post earnings of $1.45 per share. This would mark year-over-year growth of 36.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $63.16 billion, up 10.29% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $5.68 per share and revenue of $253.67 billion. These results would represent year-over-year changes of +24.56% and +8.46%, respectively.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. 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.
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, 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 0.05% higher within the past month. Alphabet currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 24.02. Its industry sports an average Forward P/E of 30.27, so we one might conclude that Alphabet is trading at a discount comparatively.
Meanwhile, GOOGL's PEG ratio is currently 1.57. 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 2.2 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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.