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

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Alphabet Inc. (GOOG - Free Report) closed at $2,344.59 in the latest trading session, marking a +0.19% move from the prior day. This move lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the company had gained 3.47% in the past month. In that same time, the Computer and Technology sector lost 0.21%, while the S&P 500 gained 0.1%.

Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release. In that report, analysts expect Alphabet Inc. to post earnings of $26.55 per share. This would mark a year-over-year decline of 2.6%. Our most recent consensus estimate is calling for quarterly revenue of $58.05 billion, up 13.93% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $111.86 per share and revenue of $244.17 billion. These totals would mark changes of -0.3% and +15.14%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Alphabet Inc.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. 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 0.67% lower within the past month. Alphabet Inc. is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Alphabet Inc. currently has a Forward P/E ratio of 20.92. Its industry sports an average Forward P/E of 20.92, so we one might conclude that Alphabet Inc. is trading at a no noticeable deviation comparatively.

Investors should also note that GOOG has a PEG ratio of 1.1 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 1.54 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 170, putting it in the bottom 33% 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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