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Alphabet (GOOGL) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Alphabet (GOOGL - Free Report) closed at $97.18, marking a -0.69% move from the previous day. This change lagged the S&P 500's daily loss of 0.65%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.07%.
Coming into today, shares of the internet search leader had lost 11.73% in the past month. In that same time, the Computer and Technology sector lost 13.29%, while the S&P 500 lost 11.07%.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. This is expected to be October 25, 2022. In that report, analysts expect Alphabet to post earnings of $1.25 per share. This would mark a year-over-year decline of 10.71%. Our most recent consensus estimate is calling for quarterly revenue of $58.35 billion, up 8.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.21 per share and revenue of $236.72 billion. These totals would mark changes of -7.13% and +11.63%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 18.79. This valuation marks a discount compared to its industry's average Forward P/E of 19.69.
Also, we should mention that GOOGL has a PEG ratio of 1.66. 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 1.67 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Alphabet (GOOGL) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Alphabet (GOOGL - Free Report) closed at $97.18, marking a -0.69% move from the previous day. This change lagged the S&P 500's daily loss of 0.65%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.07%.
Coming into today, shares of the internet search leader had lost 11.73% in the past month. In that same time, the Computer and Technology sector lost 13.29%, while the S&P 500 lost 11.07%.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. This is expected to be October 25, 2022. In that report, analysts expect Alphabet to post earnings of $1.25 per share. This would mark a year-over-year decline of 10.71%. Our most recent consensus estimate is calling for quarterly revenue of $58.35 billion, up 8.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.21 per share and revenue of $236.72 billion. These totals would mark changes of -7.13% and +11.63%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 18.79. This valuation marks a discount compared to its industry's average Forward P/E of 19.69.
Also, we should mention that GOOGL has a PEG ratio of 1.66. 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 1.67 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.