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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Alphabet (GOOGL - Free Report) closed at $2,963.73, marking a +0.62% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.48%.
Prior to today's trading, shares of the internet search leader had lost 1.11% over the past month. This has lagged the Computer and Technology sector's loss of 0.76% and the S&P 500's loss of 0.04% in that time.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. On that day, Alphabet is projected to report earnings of $26.71 per share, which would represent year-over-year growth of 19.78%. Our most recent consensus estimate is calling for quarterly revenue of $59.3 billion, up 27.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $108.29 per share and revenue of $209.34 billion. These totals would mark changes of +84.76% and +39.8%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 0.4% higher within the past month. Alphabet is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 27.2. For comparison, its industry has an average Forward P/E of 27.27, which means Alphabet is trading at a discount to the group.
Meanwhile, GOOGL's PEG ratio is currently 1.05. 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. GOOGL's industry had an average PEG ratio of 3.83 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 175, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Alphabet (GOOGL - Free Report) closed at $2,963.73, marking a +0.62% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.48%.
Prior to today's trading, shares of the internet search leader had lost 1.11% over the past month. This has lagged the Computer and Technology sector's loss of 0.76% and the S&P 500's loss of 0.04% in that time.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. On that day, Alphabet is projected to report earnings of $26.71 per share, which would represent year-over-year growth of 19.78%. Our most recent consensus estimate is calling for quarterly revenue of $59.3 billion, up 27.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $108.29 per share and revenue of $209.34 billion. These totals would mark changes of +84.76% and +39.8%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 0.4% higher within the past month. Alphabet is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 27.2. For comparison, its industry has an average Forward P/E of 27.27, which means Alphabet is trading at a discount to the group.
Meanwhile, GOOGL's PEG ratio is currently 1.05. 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. GOOGL's industry had an average PEG ratio of 3.83 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 175, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.