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Alphabet Inc. (GOOG) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest market close, Alphabet Inc. (GOOG - Free Report) reached $158.74, with a -0.09% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.67%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 0.87%.

Prior to today's trading, shares of the company had lost 7.95% over the past month. This has was narrower than the Computer and Technology sector's loss of 7.99% and lagged the S&P 500's loss of 5.28% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Alphabet Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.04, signifying a 7.94% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $75.66 billion, up 11.93% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.91 per share and revenue of $334.36 billion. These totals would mark changes of +10.82% and +13.3%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alphabet Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.2% higher. Alphabet Inc. is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 17.84. This indicates a discount in contrast to its industry's Forward P/E of 25.03.

Meanwhile, GOOG's PEG ratio is currently 1.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.32.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 140, this industry ranks in the bottom 44% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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