Back to top

Image: Bigstock

Alphabet Inc. (GOOG) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Alphabet Inc. (GOOG - Free Report) closed at $88.80 in the latest trading session, marking a +0.73% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, added 11.55%.

Coming into today, shares of the company had lost 5.28% in the past month. In that same time, the Computer and Technology sector lost 8.41%, while the S&P 500 lost 1.03%.

Alphabet Inc. will be looking to display strength as it nears its next earnings release. On that day, Alphabet Inc. is projected to report earnings of $1.20 per share, which would represent a year-over-year decline of 21.57%. Meanwhile, our latest consensus estimate is calling for revenue of $63.23 billion, up 2.15% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Alphabet Inc.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. 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. Within the past 30 days, our consensus EPS projection has moved 0.33% lower. Alphabet Inc. is currently a Zacks Rank #3 (Hold).

In terms of valuation, Alphabet Inc. is currently trading at a Forward P/E ratio of 17.43. This valuation marks a discount compared to its industry's average Forward P/E of 19.87.

We can also see that GOOG currently has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.57 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 147, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Alphabet Inc. (GOOG) - free report >>

Published in