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Alphabet (GOOGL) Declines More Than Market: Some Information for Investors

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In the latest market close, Alphabet (GOOGL - Free Report) reached $191.93, with a -1.78% movement compared to the previous day. This change lagged the S&P 500's 0.54% loss on the day. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 0.66%.

Prior to today's trading, shares of the internet search leader had gained 9.24% over the past month. This has outpaced the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 1.5% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Alphabet in its upcoming earnings disclosure. In that report, analysts expect Alphabet to post earnings of $2.12 per share. This would mark year-over-year growth of 29.27%. At the same time, our most recent consensus estimate is projecting a revenue of $81.39 billion, reflecting a 12.53% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $8.02 per share and a revenue of $294.74 billion, demonstrating changes of +38.28% and +14.91%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has moved 0.24% higher. Alphabet is currently a Zacks Rank #3 (Hold).

In terms of valuation, Alphabet is presently being traded at a Forward P/E ratio of 24.36. This signifies a discount in comparison to the average Forward P/E of 24.45 for its industry.

It's also important to note that GOOGL currently trades at a PEG ratio of 1.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services was holding an average PEG ratio of 2.2 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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