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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 $137.74, moving +0.39% from the previous trading session. This move lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 1.14%.
Heading into today, shares of the company had gained 5.4% over the past month, outpacing the Computer and Technology sector's gain of 1.08% and the S&P 500's loss of 0.73% in that time.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release. On that day, Alphabet Inc. is projected to report earnings of $1.45 per share, which would represent year-over-year growth of 36.79%. Our most recent consensus estimate is calling for quarterly revenue of $63.16 billion, up 10.29% from the year-ago period.
GOOG's full-year Zacks Consensus Estimates are calling for earnings of $5.68 per share and revenue of $253.67 billion. These results would represent year-over-year changes of +24.56% and +8.46%, respectively.
It is also important to note the recent changes to analyst estimates for Alphabet Inc.These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 0.05% higher. Alphabet Inc. currently has a Zacks Rank of #3 (Hold).
Investors should also note Alphabet Inc.'s current valuation metrics, including its Forward P/E ratio of 24.16. Its industry sports an average Forward P/E of 30.27, so we one might conclude that Alphabet Inc. is trading at a discount comparatively.
It is also worth noting that GOOG currently has a PEG ratio of 1.58. 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 was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many 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 $137.74, moving +0.39% from the previous trading session. This move lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 1.14%.
Heading into today, shares of the company had gained 5.4% over the past month, outpacing the Computer and Technology sector's gain of 1.08% and the S&P 500's loss of 0.73% in that time.
Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release. On that day, Alphabet Inc. is projected to report earnings of $1.45 per share, which would represent year-over-year growth of 36.79%. Our most recent consensus estimate is calling for quarterly revenue of $63.16 billion, up 10.29% from the year-ago period.
GOOG's full-year Zacks Consensus Estimates are calling for earnings of $5.68 per share and revenue of $253.67 billion. These results would represent year-over-year changes of +24.56% and +8.46%, respectively.
It is also important to note the recent changes to analyst estimates for Alphabet Inc.These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 0.05% higher. Alphabet Inc. currently has a Zacks Rank of #3 (Hold).
Investors should also note Alphabet Inc.'s current valuation metrics, including its Forward P/E ratio of 24.16. Its industry sports an average Forward P/E of 30.27, so we one might conclude that Alphabet Inc. is trading at a discount comparatively.
It is also worth noting that GOOG currently has a PEG ratio of 1.58. 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 was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.