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Alphabet (GOOGL) Dips More Than Broader Markets: What You Should Know
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Alphabet (GOOGL - Free Report) closed at $1,102.44 in the latest trading session, marking a -1.62% move from the prior day. This move lagged the S&P 500's daily loss of 0.59%. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.88%.
Heading into today, shares of the internet search leader had lost 5.21% over the past month, outpacing the Computer and Technology sector's loss of 5.44% and lagging the S&P 500's loss of 4.1% in that time.
GOOGL will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2018. On that day, GOOGL is projected to report earnings of $10.50 per share, which would represent year-over-year growth of 9.72%. Meanwhile, our latest consensus estimate is calling for revenue of $27.25 billion, up 22.36% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $39.71 per share and revenue of $109.60 billion, which would represent changes of +23.9% and +22.9%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GOOGL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.17% higher. GOOGL is currently a Zacks Rank #3 (Hold).
Looking at its valuation, GOOGL is holding a Forward P/E ratio of 28.22. Its industry sports an average Forward P/E of 35.92, so we one might conclude that GOOGL is trading at a discount comparatively.
Investors should also note that GOOGL has a PEG ratio of 1.52 right now. 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. GOOGL's industry had an average PEG ratio of 2.75 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 89, putting it in the top 35% 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
Alphabet (GOOGL - Free Report) closed at $1,102.44 in the latest trading session, marking a -1.62% move from the prior day. This move lagged the S&P 500's daily loss of 0.59%. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.88%.
Heading into today, shares of the internet search leader had lost 5.21% over the past month, outpacing the Computer and Technology sector's loss of 5.44% and lagging the S&P 500's loss of 4.1% in that time.
GOOGL will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2018. On that day, GOOGL is projected to report earnings of $10.50 per share, which would represent year-over-year growth of 9.72%. Meanwhile, our latest consensus estimate is calling for revenue of $27.25 billion, up 22.36% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $39.71 per share and revenue of $109.60 billion, which would represent changes of +23.9% and +22.9%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for GOOGL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.17% higher. GOOGL is currently a Zacks Rank #3 (Hold).
Looking at its valuation, GOOGL is holding a Forward P/E ratio of 28.22. Its industry sports an average Forward P/E of 35.92, so we one might conclude that GOOGL is trading at a discount comparatively.
Investors should also note that GOOGL has a PEG ratio of 1.52 right now. 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. GOOGL's industry had an average PEG ratio of 2.75 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 89, putting it in the top 35% 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.