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

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Alphabet Inc. (GOOG - Free Report) closed at $2,092.52 in the latest trading session, marking a +1.26% move from the prior day. This change outpaced the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, added 0.09%.

Investors will be hoping for strength from GOOG as it approaches its next earnings release. The company is expected to report EPS of $15.73, up 59.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $42.18 billion, up 25.13% from the year-ago period.

GOOG's full-year Zacks Consensus Estimates are calling for earnings of $69.05 per share and revenue of $186.53 billion. These results would represent year-over-year changes of +17.81% and +24.56%, respectively.

Investors should also note any recent changes to analyst estimates for GOOG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. GOOG is currently a Zacks Rank #3 (Hold).

In terms of valuation, GOOG is currently trading at a Forward P/E ratio of 29.86. Its industry sports an average Forward P/E of 29.78, so we one might conclude that GOOG is trading at a premium comparatively.

Investors should also note that GOOG has a PEG ratio of 1.68 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. The Internet - Services industry currently had an average PEG ratio of 2.38 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 151, putting it in the bottom 41% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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