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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
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Alphabet (GOOGL - Free Report) closed at $138.21 in the latest trading session, marking a +0.59% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the internet search leader had gained 7.8% over the past month. This has outpaced the Computer and Technology sector's gain of 1.5% and the S&P 500's gain of 0.38% 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 $1.45 per share. This would mark year-over-year growth of 36.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $63.15 billion, up 10.27% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.68 per share and revenue of $253.64 billion. These totals would mark changes of +24.56% and +8.45%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 24.2. This represents a discount compared to its industry's average Forward P/E of 31.
We can also see that GOOGL 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 1.81 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 149, which puts it in the bottom 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
Alphabet (GOOGL - Free Report) closed at $138.21 in the latest trading session, marking a +0.59% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the internet search leader had gained 7.8% over the past month. This has outpaced the Computer and Technology sector's gain of 1.5% and the S&P 500's gain of 0.38% 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 $1.45 per share. This would mark year-over-year growth of 36.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $63.15 billion, up 10.27% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.68 per share and revenue of $253.64 billion. These totals would mark changes of +24.56% and +8.45%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 24.2. This represents a discount compared to its industry's average Forward P/E of 31.
We can also see that GOOGL 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 1.81 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 149, which puts it in the bottom 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.