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Alphabet (GOOGL) Gains But Lags Market: What You Should Know
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Alphabet (GOOGL - Free Report) closed the most recent trading day at $100.77, moving +0.8% from the previous trading session. This change lagged the S&P 500's 1.14% gain on the day. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Investors will be hoping for strength from Alphabet as it approaches its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $1.25, down 10.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.35 billion, up 8.83% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $5.08 per share and revenue of $236.72 billion. These results would represent year-over-year changes of -9.45% and +11.63%, respectively.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.45% lower within the past month. Alphabet is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 19.67. Its industry sports an average Forward P/E of 19.83, so we one might conclude that Alphabet is trading at a discount comparatively.
Meanwhile, GOOGL's PEG ratio is currently 1.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alphabet (GOOGL) Gains But Lags Market: What You Should Know
Alphabet (GOOGL - Free Report) closed the most recent trading day at $100.77, moving +0.8% from the previous trading session. This change lagged the S&P 500's 1.14% gain on the day. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Investors will be hoping for strength from Alphabet as it approaches its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $1.25, down 10.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.35 billion, up 8.83% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $5.08 per share and revenue of $236.72 billion. These results would represent year-over-year changes of -9.45% and +11.63%, respectively.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.45% lower within the past month. Alphabet is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 19.67. Its industry sports an average Forward P/E of 19.83, so we one might conclude that Alphabet is trading at a discount comparatively.
Meanwhile, GOOGL's PEG ratio is currently 1.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.