Back to top

Image: Bigstock

Alphabet Inc. (GOOG) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Alphabet Inc. (GOOG - Free Report) closed at $2,758 in the latest trading session, marking a +0.87% move from the prior day. This change outpaced the S&P 500's 0.3% gain on the day.

Heading into today, shares of the company had lost 4.67% over the past month, outpacing the Computer and Technology sector's loss of 5.35% and lagging the S&P 500's loss of 2.37% in that time.

GOOG will be looking to display strength as it nears its next earnings release, which is expected to be October 26, 2021. The company is expected to report EPS of $23.12, up 40.98% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $51.8 billion, up 36.29% from the year-ago period.

GOOG's full-year Zacks Consensus Estimates are calling for earnings of $101.86 per share and revenue of $206.5 billion. These results would represent year-over-year changes of +73.79% and +37.9%, respectively.

It is also important to note the recent changes to analyst estimates for GOOG. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GOOG is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note GOOG's current valuation metrics, including its Forward P/E ratio of 26.84. This valuation marks a premium compared to its industry's average Forward P/E of 26.82.

Investors should also note that GOOG has a PEG ratio of 1.78 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 was holding an average PEG ratio of 4.03 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Alphabet Inc. (GOOG) - free report >>

Published in