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Alphabet Inc. (GOOG) Exceeds Market Returns: Some Facts to Consider
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In the latest close session, Alphabet Inc. (GOOG - Free Report) was up +2.05% at $251.51. The stock outpaced the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 0.71%.
Shares of the company witnessed a gain of 4.8% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.04%, and outperforming the S&P 500's gain of 4.26%.
Market participants will be closely following the financial results of Alphabet Inc. in its upcoming release. On that day, Alphabet Inc. is projected to report earnings of $2.29 per share, which would represent year-over-year growth of 8.02%. In the meantime, our current consensus estimate forecasts the revenue to be $84.56 billion, indicating a 13.42% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.96 per share and a revenue of $334.66 billion, representing changes of +23.88% and +13.4%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.34% lower. Alphabet Inc. is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Alphabet Inc. is presently trading at a Forward P/E ratio of 24.75. This valuation marks a premium compared to its industry average Forward P/E of 24.7.
Also, we should mention that GOOG has a PEG ratio of 1.66. 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. The Internet - Services industry had an average PEG ratio of 1.66 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Alphabet Inc. (GOOG) Exceeds Market Returns: Some Facts to Consider
In the latest close session, Alphabet Inc. (GOOG - Free Report) was up +2.05% at $251.51. The stock outpaced the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 0.71%.
Shares of the company witnessed a gain of 4.8% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.04%, and outperforming the S&P 500's gain of 4.26%.
Market participants will be closely following the financial results of Alphabet Inc. in its upcoming release. On that day, Alphabet Inc. is projected to report earnings of $2.29 per share, which would represent year-over-year growth of 8.02%. In the meantime, our current consensus estimate forecasts the revenue to be $84.56 billion, indicating a 13.42% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.96 per share and a revenue of $334.66 billion, representing changes of +23.88% and +13.4%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.34% lower. Alphabet Inc. is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Alphabet Inc. is presently trading at a Forward P/E ratio of 24.75. This valuation marks a premium compared to its industry average Forward P/E of 24.7.
Also, we should mention that GOOG has a PEG ratio of 1.66. 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. The Internet - Services industry had an average PEG ratio of 1.66 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.