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Why Alphabet Inc. (GOOG) Outpaced the Stock Market Today
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Alphabet Inc. (GOOG - Free Report) ended the recent trading session at $140.49, demonstrating a +1.38% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.06%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 1.2%.
Shares of the company witnessed a gain of 0.2% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.02% and the S&P 500's loss of 3%.
Investors will be eagerly watching for the performance of Alphabet Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.45, indicating a 36.79% growth compared to the equivalent quarter last year. 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.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. Currently, Alphabet Inc. is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet Inc. is presently being traded at a Forward P/E ratio of 24.4. This represents no noticeable deviation compared to its industry's average Forward P/E of 24.4.
One should further note that GOOG currently holds a PEG ratio of 1.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.87.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why Alphabet Inc. (GOOG) Outpaced the Stock Market Today
Alphabet Inc. (GOOG - Free Report) ended the recent trading session at $140.49, demonstrating a +1.38% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.06%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 1.2%.
Shares of the company witnessed a gain of 0.2% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.02% and the S&P 500's loss of 3%.
Investors will be eagerly watching for the performance of Alphabet Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.45, indicating a 36.79% growth compared to the equivalent quarter last year. 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.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. Currently, Alphabet Inc. is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet Inc. is presently being traded at a Forward P/E ratio of 24.4. This represents no noticeable deviation compared to its industry's average Forward P/E of 24.4.
One should further note that GOOG currently holds a PEG ratio of 1.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.87.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.