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Alphabet (GOOGL) Stock Moves -0.6%: What You Should Know

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Alphabet (GOOGL - Free Report) closed the most recent trading day at $154.56, moving -0.6% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 1%, and the Nasdaq, a tech-heavy index, lost 0.95%.

Heading into today, shares of the internet search leader had gained 16.6% over the past month, outpacing the Computer and Technology sector's gain of 2.34% and the S&P 500's gain of 2.16% in that time.

The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. The company is forecasted to report an EPS of $1.49, showcasing a 27.35% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $65.95 billion, up 13.57% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.77 per share and revenue of $290.4 billion, which would represent changes of +16.72% and +13.21%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alphabet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.01% decrease. Right now, Alphabet possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Alphabet is presently being traded at a Forward P/E ratio of 22.96. This represents a discount compared to its industry's average Forward P/E of 23.1.

We can also see that GOOGL currently has a PEG ratio of 1.44. 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 Internet - Services industry currently had an average PEG ratio of 2.21 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.


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