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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
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The latest trading session saw Alphabet (GOOGL - Free Report) ending at $173.79, denoting a +0.36% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.15%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.17%.
Coming into today, shares of the internet search leader had gained 3.02% in the past month. In that same time, the Computer and Technology sector gained 5.13%, while the S&P 500 gained 3.2%.
Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.85, showcasing a 28.47% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.55 billion, up 13.67% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $7.60 per share and a revenue of $295.53 billion, demonstrating changes of +31.03% and +15.21%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 0.4% higher. Currently, Alphabet is carrying a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 22.77. For comparison, its industry has an average Forward P/E of 22.67, which means Alphabet is trading at a premium to the group.
It is also worth noting that GOOGL currently has a PEG ratio of 1.3. 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 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw Alphabet (GOOGL - Free Report) ending at $173.79, denoting a +0.36% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.15%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.17%.
Coming into today, shares of the internet search leader had gained 3.02% in the past month. In that same time, the Computer and Technology sector gained 5.13%, while the S&P 500 gained 3.2%.
Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.85, showcasing a 28.47% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.55 billion, up 13.67% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $7.60 per share and a revenue of $295.53 billion, demonstrating changes of +31.03% and +15.21%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 0.4% higher. Currently, Alphabet is carrying a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 22.77. For comparison, its industry has an average Forward P/E of 22.67, which means Alphabet is trading at a premium to the group.
It is also worth noting that GOOGL currently has a PEG ratio of 1.3. 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 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.