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Alphabet (GOOGL) Advances While Market Declines: Some Information for Investors
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Alphabet (GOOGL - Free Report) closed the most recent trading day at $138.34, moving +1.24% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.47%. On the other hand, the Dow registered a loss of 1.27%, and the technology-centric Nasdaq decreased by 1.5%.
Prior to today's trading, shares of the internet search leader had lost 0.23% over the past month. This has lagged the Computer and Technology sector's gain of 4.98% and the S&P 500's gain of 5.77% in that time.
Market participants will be closely following the financial results of Alphabet in its upcoming release. It is anticipated that the company will report an EPS of $1.60, marking a 52.38% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $70.64 billion, showing a 11.9% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.75 per share and a revenue of $254.77 billion, demonstrating changes of +26.1% and +8.93%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Alphabet. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Alphabet is currently a Zacks Rank #3 (Hold).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 23.75. This expresses a discount compared to the average Forward P/E of 27.59 of its industry.
One should further note that GOOGL currently holds a PEG ratio of 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Services industry stood at 2.45 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Alphabet (GOOGL) Advances While Market Declines: Some Information for Investors
Alphabet (GOOGL - Free Report) closed the most recent trading day at $138.34, moving +1.24% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.47%. On the other hand, the Dow registered a loss of 1.27%, and the technology-centric Nasdaq decreased by 1.5%.
Prior to today's trading, shares of the internet search leader had lost 0.23% over the past month. This has lagged the Computer and Technology sector's gain of 4.98% and the S&P 500's gain of 5.77% in that time.
Market participants will be closely following the financial results of Alphabet in its upcoming release. It is anticipated that the company will report an EPS of $1.60, marking a 52.38% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $70.64 billion, showing a 11.9% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.75 per share and a revenue of $254.77 billion, demonstrating changes of +26.1% and +8.93%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Alphabet. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Alphabet is currently a Zacks Rank #3 (Hold).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 23.75. This expresses a discount compared to the average Forward P/E of 27.59 of its industry.
One should further note that GOOGL currently holds a PEG ratio of 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Services industry stood at 2.45 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.