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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Alphabet (GOOGL - Free Report) closed at $139.10, marking a +1.26% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.06% for the day. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 1.2%.
Heading into today, shares of the internet search leader had lost 0.03% over the past month, outpacing the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3% in that time.
Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. 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 latest consensus estimate predicts the revenue to be $63.15 billion, indicating a 10.27% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.68 per share and a revenue of $253.67 billion, signifying shifts of +24.56% and +8.46%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Alphabet. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 24.18. This indicates a discount in contrast to its industry's Forward P/E of 24.4.
It's also important to note that GOOGL currently trades at a PEG ratio of 1.58. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 80, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Alphabet (GOOGL - Free Report) closed at $139.10, marking a +1.26% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.06% for the day. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 1.2%.
Heading into today, shares of the internet search leader had lost 0.03% over the past month, outpacing the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3% in that time.
Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. 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 latest consensus estimate predicts the revenue to be $63.15 billion, indicating a 10.27% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.68 per share and a revenue of $253.67 billion, signifying shifts of +24.56% and +8.46%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Alphabet. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% upward. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 24.18. This indicates a discount in contrast to its industry's Forward P/E of 24.4.
It's also important to note that GOOGL currently trades at a PEG ratio of 1.58. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 80, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.