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Why Alphabet (GOOGL) Outpaced the Stock Market Today
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In the latest market close, Alphabet (GOOGL - Free Report) reached $158.06, with a +0.38% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.52%.
Coming into today, shares of the internet search leader had lost 3.38% in the past month. In that same time, the Computer and Technology sector gained 1.56%, while the S&P 500 gained 3.67%.
The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. The company's earnings per share (EPS) are projected to be $1.83, reflecting a 18.06% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $72.77 billion, reflecting a 13.61% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.63 per share and revenue of $292.3 billion. These totals would mark changes of +31.55% and +13.95%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Alphabet. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Alphabet is currently exchanging hands at a Forward P/E ratio of 20.63. Its industry sports an average Forward P/E of 30.5, so one might conclude that Alphabet is trading at a discount comparatively.
Also, we should mention that GOOGL has a PEG ratio of 1.18. 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. GOOGL's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Why Alphabet (GOOGL) Outpaced the Stock Market Today
In the latest market close, Alphabet (GOOGL - Free Report) reached $158.06, with a +0.38% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.52%.
Coming into today, shares of the internet search leader had lost 3.38% in the past month. In that same time, the Computer and Technology sector gained 1.56%, while the S&P 500 gained 3.67%.
The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. The company's earnings per share (EPS) are projected to be $1.83, reflecting a 18.06% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $72.77 billion, reflecting a 13.61% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.63 per share and revenue of $292.3 billion. These totals would mark changes of +31.55% and +13.95%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Alphabet. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Alphabet is currently exchanging hands at a Forward P/E ratio of 20.63. Its industry sports an average Forward P/E of 30.5, so one might conclude that Alphabet is trading at a discount comparatively.
Also, we should mention that GOOGL has a PEG ratio of 1.18. 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. GOOGL's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.