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Alphabet Inc. (GOOG) Outpaces Stock Market Gains: What You Should Know
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Alphabet Inc. (GOOG - Free Report) closed at $101.21 in the latest trading session, marking a +1.94% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.29%.
Prior to today's trading, shares of the company had gained 10.54% over the past month. This has outpaced the Computer and Technology sector's gain of 8.49% and the S&P 500's gain of 4.06% in that time.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release, which is expected to be February 2, 2023. On that day, Alphabet Inc. is projected to report earnings of $1.17 per share, which would represent a year-over-year decline of 23.53%. Meanwhile, our latest consensus estimate is calling for revenue of $63.22 billion, up 2.14% from the prior-year quarter.
Any recent changes to analyst estimates for Alphabet Inc. should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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.
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 0.62% lower. Alphabet Inc. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Alphabet Inc. is currently trading at a Forward P/E ratio of 19.68. Its industry sports an average Forward P/E of 24.65, so we one might conclude that Alphabet Inc. is trading at a discount comparatively.
Investors should also note that GOOG has a PEG ratio of 1.74 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 1.73 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 89, putting it in the top 36% 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) Outpaces Stock Market Gains: What You Should Know
Alphabet Inc. (GOOG - Free Report) closed at $101.21 in the latest trading session, marking a +1.94% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.29%.
Prior to today's trading, shares of the company had gained 10.54% over the past month. This has outpaced the Computer and Technology sector's gain of 8.49% and the S&P 500's gain of 4.06% in that time.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release, which is expected to be February 2, 2023. On that day, Alphabet Inc. is projected to report earnings of $1.17 per share, which would represent a year-over-year decline of 23.53%. Meanwhile, our latest consensus estimate is calling for revenue of $63.22 billion, up 2.14% from the prior-year quarter.
Any recent changes to analyst estimates for Alphabet Inc. should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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.
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 0.62% lower. Alphabet Inc. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Alphabet Inc. is currently trading at a Forward P/E ratio of 19.68. Its industry sports an average Forward P/E of 24.65, so we one might conclude that Alphabet Inc. is trading at a discount comparatively.
Investors should also note that GOOG has a PEG ratio of 1.74 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 1.73 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 89, putting it in the top 36% 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.