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Alphabet Inc. (GOOG) Outperforms Broader Market: What You Need to Know

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Alphabet Inc. (GOOG - Free Report) closed at $158.99 in the latest trading session, marking a +0.39% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.13% for the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.52%.

Shares of the company have depreciated by 3.87% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.56% and the S&P 500's gain of 3.67%.

The investment community will be closely monitoring the performance of Alphabet Inc. in its forthcoming earnings report. The company's upcoming EPS is projected at $1.83, signifying a 18.06% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $72.78 billion, up 13.62% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $7.63 per share and a revenue of $292.21 billion, demonstrating changes of +31.55% and +13.92%, respectively, from the preceding year.

Any recent changes to analyst estimates for Alphabet Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Alphabet Inc. is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Alphabet Inc. is at present trading with a Forward P/E ratio of 20.75. This valuation marks a discount compared to its industry's average Forward P/E of 30.5.

We can additionally observe that GOOG currently boasts a PEG ratio of 1.17. 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. The Internet - Services industry had an average PEG ratio of 2.23 as trading concluded yesterday.

The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 35% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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