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Alphabet (GOOGL) Gains But Lags Market: What You Should Know
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Alphabet (GOOGL - Free Report) closed at $103.07 in the latest trading session, marking a +0.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the internet search leader had lost 12.29% over the past month. This has was narrower than the Computer and Technology sector's loss of 14.62% and lagged the S&P 500's loss of 9.94% in that time.
Investors will be hoping for strength from Alphabet as it approaches its next earnings release. On that day, Alphabet is projected to report earnings of $1.25 per share, which would represent a year-over-year decline of 10.71%. Meanwhile, our latest consensus estimate is calling for revenue of $58.44 billion, up 8.99% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $236.94 billion, which would represent changes of -7.13% and +11.73%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Alphabet. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.22% higher within the past month. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 19.73. This valuation marks a discount compared to its industry's average Forward P/E of 20.91.
It is also worth noting that GOOGL currently has a PEG ratio of 1.66. 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. GOOGL's industry had an average PEG ratio of 1.68 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 87, which puts it in the top 35% 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.
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 at $103.07 in the latest trading session, marking a +0.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the internet search leader had lost 12.29% over the past month. This has was narrower than the Computer and Technology sector's loss of 14.62% and lagged the S&P 500's loss of 9.94% in that time.
Investors will be hoping for strength from Alphabet as it approaches its next earnings release. On that day, Alphabet is projected to report earnings of $1.25 per share, which would represent a year-over-year decline of 10.71%. Meanwhile, our latest consensus estimate is calling for revenue of $58.44 billion, up 8.99% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $236.94 billion, which would represent changes of -7.13% and +11.73%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Alphabet. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.22% higher within the past month. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 19.73. This valuation marks a discount compared to its industry's average Forward P/E of 20.91.
It is also worth noting that GOOGL currently has a PEG ratio of 1.66. 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. GOOGL's industry had an average PEG ratio of 1.68 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 87, which puts it in the top 35% 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.
To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.