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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know

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Alphabet (GOOGL - Free Report) closed the most recent trading day at $1,655.08, moving +1.57% from the previous trading session. This change outpaced the S&P 500's 0.75% gain on the day. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.4%.

Prior to today's trading, shares of the internet search leader had gained 9.9% over the past month. This has outpaced the Computer and Technology sector's loss of 2.52% and the S&P 500's gain of 7% in that time.

Wall Street will be looking for positivity from GOOGL as it approaches its next earnings report date. On that day, GOOGL is projected to report earnings of $11.27 per share, which would represent year-over-year growth of 11.36%. Meanwhile, our latest consensus estimate is calling for revenue of $35.22 billion, up 6.69% from the prior-year quarter.

GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $44.74 per share and revenue of $141.66 billion. These results would represent year-over-year changes of -8.99% and +7.51%, respectively.

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 a result, we can interpret positive estimate revisions as a good sign for 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, 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 0.41% higher. GOOGL is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, GOOGL currently has a Forward P/E ratio of 36.42. This represents a discount compared to its industry's average Forward P/E of 37.97.

We can also see that GOOGL currently has a PEG ratio of 2.23. 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 2.23 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 117, putting it in the top 47% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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