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Here's Why Alphabet (GOOGL) Fell More Than Broader Market
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Alphabet (GOOGL - Free Report) ended the recent trading session at $162.85, demonstrating a -1.11% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.6%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 1.12%.
Heading into today, shares of the internet search leader had lost 3.29% over the past month, lagging the Computer and Technology sector's gain of 2.97% and the S&P 500's gain of 3.15% in that time.
The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. The company is forecasted to report an EPS of $1.83, showcasing a 18.06% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $72.79 billion, showing a 13.64% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.63 per share and a revenue of $296.53 billion, signifying shifts of +31.55% and +15.6%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Alphabet. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.19% increase. Alphabet is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 21.58. This signifies a discount in comparison to the average Forward P/E of 25.57 for its industry.
We can additionally observe that GOOGL currently boasts a PEG ratio of 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Services industry stood at 1.75 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why Alphabet (GOOGL) Fell More Than Broader Market
Alphabet (GOOGL - Free Report) ended the recent trading session at $162.85, demonstrating a -1.11% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.6%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 1.12%.
Heading into today, shares of the internet search leader had lost 3.29% over the past month, lagging the Computer and Technology sector's gain of 2.97% and the S&P 500's gain of 3.15% in that time.
The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. The company is forecasted to report an EPS of $1.83, showcasing a 18.06% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $72.79 billion, showing a 13.64% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.63 per share and a revenue of $296.53 billion, signifying shifts of +31.55% and +15.6%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Alphabet. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.19% increase. Alphabet is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 21.58. This signifies a discount in comparison to the average Forward P/E of 25.57 for its industry.
We can additionally observe that GOOGL currently boasts a PEG ratio of 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Services industry stood at 1.75 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.