We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alphabet (GOOGL) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Alphabet (GOOGL - Free Report) closed at $1,189.84, marking a -0.63% move from the previous day. This change lagged the S&P 500's 0.72% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq added 0.71%.
Prior to today's trading, shares of the internet search leader had gained 7.16% over the past month. This has outpaced the Computer and Technology sector's gain of 2.41% and the S&P 500's gain of 0.28% in that time.
Wall Street will be looking for positivity from GOOGL as it approaches its next earnings report date. The company is expected to report EPS of $10.55, up 6.24% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $29.98 billion, up 20.59% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $47.40 per share and revenue of $131.79 billion, which would represent changes of +8.47% and +19.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GOOGL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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 0.05% higher. GOOGL is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, GOOGL currently has a Forward P/E ratio of 25.26. For comparison, its industry has an average Forward P/E of 25.22, which means GOOGL is trading at a premium to the group.
We can also see that GOOGL currently has a PEG ratio of 1.44. 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 was holding an average PEG ratio of 3.04 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alphabet (GOOGL) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Alphabet (GOOGL - Free Report) closed at $1,189.84, marking a -0.63% move from the previous day. This change lagged the S&P 500's 0.72% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq added 0.71%.
Prior to today's trading, shares of the internet search leader had gained 7.16% over the past month. This has outpaced the Computer and Technology sector's gain of 2.41% and the S&P 500's gain of 0.28% in that time.
Wall Street will be looking for positivity from GOOGL as it approaches its next earnings report date. The company is expected to report EPS of $10.55, up 6.24% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $29.98 billion, up 20.59% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $47.40 per share and revenue of $131.79 billion, which would represent changes of +8.47% and +19.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GOOGL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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 0.05% higher. GOOGL is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, GOOGL currently has a Forward P/E ratio of 25.26. For comparison, its industry has an average Forward P/E of 25.22, which means GOOGL is trading at a premium to the group.
We can also see that GOOGL currently has a PEG ratio of 1.44. 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 was holding an average PEG ratio of 3.04 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.