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

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Alphabet (GOOGL - Free Report) closed at $1,535.12 in the latest trading session, marking a +1.74% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.21%.

Heading into today, shares of the internet search leader had lost 0.49% over the past month, lagging the Computer and Technology sector's gain of 0.89% and the S&P 500's gain of 0.49% in that time.

Wall Street will be looking for positivity from GOOGL as it approaches its next earnings report date. In that report, analysts expect GOOGL to post earnings of $11.27 per share. This would mark year-over-year growth of 11.36%. Our most recent consensus estimate is calling for quarterly revenue of $35.22 billion, up 6.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $44.74 per share and revenue of $141.66 billion. These totals would mark changes of -8.99% and +7.51%, respectively, from last 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. GOOGL is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that GOOGL has a Forward P/E ratio of 33.73 right now. This represents a discount compared to its industry's average Forward P/E of 37.73.

Investors should also note that GOOGL has a PEG ratio of 2.07 right now. 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. GOOGL's industry had an average PEG ratio of 2.07 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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.

To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.


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