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Alphabet (GOOGL) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest market close, Alphabet (GOOGL - Free Report) reached $131.94, with a -0.48% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.27%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.19%.
Coming into today, shares of the internet search leader had lost 1.52% in the past month. In that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 6.94%.
The investment community will be closely monitoring the performance of Alphabet in its forthcoming earnings report. The company's upcoming EPS is projected at $1.60, signifying a 52.38% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $70.64 billion, up 11.9% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.75 per share and a revenue of $254.77 billion, signifying shifts of +26.1% and +8.93%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alphabet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 23.04. This denotes a discount relative to the industry's average Forward P/E of 26.86.
One should further note that GOOGL currently holds a PEG ratio of 1.39. 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. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 2.36.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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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Alphabet (GOOGL) Stock Drops Despite Market Gains: Important Facts to Note
In the latest market close, Alphabet (GOOGL - Free Report) reached $131.94, with a -0.48% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.27%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.19%.
Coming into today, shares of the internet search leader had lost 1.52% in the past month. In that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 6.94%.
The investment community will be closely monitoring the performance of Alphabet in its forthcoming earnings report. The company's upcoming EPS is projected at $1.60, signifying a 52.38% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $70.64 billion, up 11.9% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.75 per share and a revenue of $254.77 billion, signifying shifts of +26.1% and +8.93%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alphabet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 23.04. This denotes a discount relative to the industry's average Forward P/E of 26.86.
One should further note that GOOGL currently holds a PEG ratio of 1.39. 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. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 2.36.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.