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Alphabet Inc. (GOOG) Rises But Trails Market: What Investors Should Know

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Alphabet Inc. (GOOG - Free Report) closed the most recent trading day at $178.78, moving +0.23% from the previous trading session. This move lagged the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.

The company's stock has climbed by 0.61% in the past month, exceeding the Computer and Technology sector's loss of 3.05% and lagging the S&P 500's gain of 3.71%.

Analysts and investors alike will be keeping a close eye on the performance of Alphabet Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $1.87, up 29.86% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $70.55 billion, indicating a 13.67% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.69 per share and revenue of $291.26 billion. These totals would mark changes of +32.59% and +13.55%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Alphabet Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.62% higher. As of now, Alphabet Inc. holds a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 23.19. This denotes a premium relative to the industry's average Forward P/E of 22.68.

Investors should also note that GOOG has a PEG ratio of 1.32 right now. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 2.13.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 38% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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