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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 the most recent trading day at $101.39, moving +0.61% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.14%. At the same time, the Dow added 1.12%, and the tech-heavy Nasdaq lost 0.02%.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $1.25, down 10.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $58.35 billion, up 8.83% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.08 per share and revenue of $236.72 billion. These totals would mark changes of -9.45% and +11.63%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 2.45% lower within the past month. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
Investors should also note Alphabet Inc.'s current valuation metrics, including its Forward P/E ratio of 19.83. Its industry sports an average Forward P/E of 19.83, so we one might conclude that Alphabet Inc. is trading at a no noticeable deviation comparatively.
Meanwhile, GOOG's PEG ratio is currently 1.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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 Inc. (GOOG) Gains But Lags Market: What You Should Know
Alphabet Inc. (GOOG - Free Report) closed the most recent trading day at $101.39, moving +0.61% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.14%. At the same time, the Dow added 1.12%, and the tech-heavy Nasdaq lost 0.02%.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $1.25, down 10.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $58.35 billion, up 8.83% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.08 per share and revenue of $236.72 billion. These totals would mark changes of -9.45% and +11.63%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 2.45% lower within the past month. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
Investors should also note Alphabet Inc.'s current valuation metrics, including its Forward P/E ratio of 19.83. Its industry sports an average Forward P/E of 19.83, so we one might conclude that Alphabet Inc. is trading at a no noticeable deviation comparatively.
Meanwhile, GOOG's PEG ratio is currently 1.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.