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Alphabet (GOOGL) Rises Higher Than Market: Key Facts

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In the latest close session, Alphabet (GOOGL - Free Report) was up +1.2% at $176.77. The stock exceeded the S&P 500, which registered a gain of 0.94% for the day. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 1.52%.

Prior to today's trading, shares of the internet search leader had gained 5.1% outpaced the Computer and Technology sector's gain of 3.9% and the S&P 500's gain of 1.67%.

Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. The company is expected to report EPS of $2.12, up 12.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $78.88 billion, up 10.55% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.51 per share and revenue of $326.57 billion, which would represent changes of +18.28% and +10.66%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Alphabet. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate has moved 0.48% higher within the past month. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Alphabet is presently being traded at a Forward P/E ratio of 18.37. This signifies no noticeable deviation in comparison to the average Forward P/E of 18.37 for its industry.

Also, we should mention that GOOGL has a PEG ratio of 1.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services industry currently had an average PEG ratio of 1.36 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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