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Alphabet Inc. (GOOG) Gains But Lags Market: What You Should Know

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In the latest trading session, Alphabet Inc. (GOOG - Free Report) closed at $2,695.03, marking a +0.43% move from the previous day. This move lagged the S&P 500's daily gain of 1.86%. Elsewhere, the Dow gained 1.79%, while the tech-heavy Nasdaq added 0.4%.

Prior to today's trading, shares of the company had lost 2.69% over the past month. This has was narrower than the Computer and Technology sector's loss of 7.07% and the S&P 500's loss of 5.05% in that time.

Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release. The company is expected to report EPS of $25.68, down 2.32% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $55.77 billion, up 22.31% from the prior-year quarter.

GOOG's full-year Zacks Consensus Estimates are calling for earnings of $117.79 per share and revenue of $249.37 billion. These results would represent year-over-year changes of +4.98% and +17.59%, respectively.

Investors might also notice recent changes to analyst estimates for Alphabet Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.15% higher. Alphabet Inc. is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 22.78. This represents a premium compared to its industry's average Forward P/E of 22.77.

Also, we should mention that GOOG has a PEG ratio of 1.15. 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 2.16 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 192, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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