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Alphabet (GOOGL) Laps the Stock Market: Here's Why
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Alphabet (GOOGL - Free Report) closed the most recent trading day at $165.83, moving +1.15% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.42%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.
Shares of the internet search leader have appreciated by 0.35% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.78% and the S&P 500's gain of 2.06%.
The investment community will be closely monitoring the performance of Alphabet in its forthcoming earnings report. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.63 per share and revenue of $292.3 billion, indicating changes of +31.55% and +13.95%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. At present, Alphabet boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alphabet has a Forward P/E ratio of 21.48 right now. This represents a discount compared to its industry's average Forward P/E of 29.59.
It is also worth noting that GOOGL currently has a PEG ratio of 1.23. 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 industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Alphabet (GOOGL) Laps the Stock Market: Here's Why
Alphabet (GOOGL - Free Report) closed the most recent trading day at $165.83, moving +1.15% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.42%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.
Shares of the internet search leader have appreciated by 0.35% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.78% and the S&P 500's gain of 2.06%.
The investment community will be closely monitoring the performance of Alphabet in its forthcoming earnings report. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.63 per share and revenue of $292.3 billion, indicating changes of +31.55% and +13.95%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. At present, Alphabet boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alphabet has a Forward P/E ratio of 21.48 right now. This represents a discount compared to its industry's average Forward P/E of 29.59.
It is also worth noting that GOOGL currently has a PEG ratio of 1.23. 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 industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.