The search engine behemoth Alphabet (GOOGL Quick QuoteGOOGL - Free Report) is expected to report its earnings on Oct 24. Over the last few years, the company has evolved from primarily being a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare providers and others. The stock currently has a good VGM (Value-Growth-Momentum) score of B.

Alphabet has an Earnings ESP of +0.89% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Alphabet has observed an uptick in earnings estimates for the September quarter over the past three months. The current consensus estimate for earnings is $1.45, up from $1.44 two months ago and $1.34 three months ago. Meanwhile, the Most Accurate Estimate is $1.46. Alphabet is expected to witness a sales expansion of 10.25% this quarter and an earnings expansion of 36.79%.

Pros & Cons Ahead of Earnings Release

Alphabet's strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Also, a strong focus on the innovation of AI techniques and the home automation space are the other tailwinds.

Google Cloud Revenue Expectations: Zacks Consensus Estimate: $8.54 billion, up 24.3% year over year

Google OtherRevenue Expectations: Zacks Consensus Estimate: $7.96 billion, up 15.4% year over year

Google PropertiesRevenue Expectations: Zacks Consensus Estimate: $50.99 billion, up 9.4% year over year

Google SearchRevenue Expectations: Zacks Consensus Estimate: $43.04 billion, up 8.9% year over year

Sluggishness in the company’s network advertisement business remains a headwind. Additionally, its growing litigation issues and increasing expenses are concerns.

Google Network Revenue Expectations: Zacks Consensus Estimate: $7.94 billion, up 0.8% y/y

Google Advertising Expectations: Zacks Consensus Estimate: $8.54 billion, up 8.2% y/y

ETFs in Focus

Against this backdrop, investors can keep a watch on Alphabet-heavy ETFs like Fidelity MSCI Communication Services Index ETF (FCOM Quick QuoteFCOM - Free Report) , Vanguard Communication Services ETF (VOX Quick QuoteVOX - Free Report) , iShares Global Comm Services ETF (IXP Quick QuoteIXP - Free Report) and Communication Services Select Sector SPDR Fund (XLC Quick QuoteXLC - Free Report) . Alphabet holds 12% to 13% of these funds.