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Alphabet (GOOGL) Gains But Lags Market: What You Should Know
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Alphabet (GOOGL - Free Report) closed the most recent trading day at $110.86, moving +0.19% from the previous trading session. This move lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the internet search leader had lost 9.06% over the past month, lagging the Computer and Technology sector's loss of 4.33% and the S&P 500's loss of 1.14% in that time.
Alphabet will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alphabet to post earnings of $1.25 per share. This would mark a year-over-year decline of 10.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.44 billion, up 8.99% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $5.21 per share and revenue of $236.94 billion. These results would represent year-over-year changes of -7.13% and +11.73%, respectively.
It is also important to note the recent changes to analyst estimates for Alphabet. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Alphabet currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 21.24. For comparison, its industry has an average Forward P/E of 21.35, which means Alphabet is trading at a discount to the group.
Meanwhile, GOOGL's PEG ratio is currently 1.79. 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. The Internet - Services industry currently had an average PEG ratio of 1.81 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 97, putting it in the top 39% 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.
To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.
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Alphabet (GOOGL) Gains But Lags Market: What You Should Know
Alphabet (GOOGL - Free Report) closed the most recent trading day at $110.86, moving +0.19% from the previous trading session. This move lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the internet search leader had lost 9.06% over the past month, lagging the Computer and Technology sector's loss of 4.33% and the S&P 500's loss of 1.14% in that time.
Alphabet will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alphabet to post earnings of $1.25 per share. This would mark a year-over-year decline of 10.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.44 billion, up 8.99% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $5.21 per share and revenue of $236.94 billion. These results would represent year-over-year changes of -7.13% and +11.73%, respectively.
It is also important to note the recent changes to analyst estimates for Alphabet. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Alphabet currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 21.24. For comparison, its industry has an average Forward P/E of 21.35, which means Alphabet is trading at a discount to the group.
Meanwhile, GOOGL's PEG ratio is currently 1.79. 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. The Internet - Services industry currently had an average PEG ratio of 1.81 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 97, putting it in the top 39% 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.
To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.