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Alphabet (GOOGL) Dips More Than Broader Market: What You Should Know

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In the latest trading session, Alphabet (GOOGL - Free Report) closed at $156.45, marking a -0.58% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.16%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq decreased by 0.3%.

Coming into today, shares of the internet search leader had lost 0.59% in the past month. In that same time, the Computer and Technology sector gained 1.63%, while the S&P 500 gained 3.64%.

Market participants will be closely following the financial results of Alphabet in its upcoming release. The company is expected to report EPS of $1.83, up 18.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $72.79 billion, up 13.64% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.63 per share and revenue of $296.48 billion, indicating changes of +31.55% and +15.58%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Alphabet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. Alphabet is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Alphabet is holding a Forward P/E ratio of 20.62. This valuation marks a discount compared to its industry's average Forward P/E of 26.17.

We can also see that GOOGL currently has a PEG ratio of 1.18. 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 Internet - Services was holding an average PEG ratio of 2.22 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 87, placing it within the top 35% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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