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Alphabet (GOOGL) Stock Dips While Market Gains: Key Facts

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Alphabet (GOOGL - Free Report) closed at $312.43 in the latest trading session, marking a -2.43% move from the prior day. This change lagged the S&P 500's 0.21% gain on the day. Elsewhere, the Dow saw an upswing of 1.35%, while the tech-heavy Nasdaq depreciated by 0.26%.

Heading into today, shares of the internet search leader had gained 11.68% over the past month, outpacing the Computer and Technology sector's gain of 2.05% and the S&P 500's gain of 0.89%.

Market participants will be closely following the financial results of Alphabet in its upcoming release. The company's upcoming EPS is projected at $2.58, signifying a 20.00% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $94.26 billion, indicating a 15.49% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.52 per share and a revenue of $340.26 billion, signifying shifts of +30.85% and +15.3%, respectively, from the last year.

Any recent changes to analyst estimates for Alphabet should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Alphabet is holding a Forward P/E ratio of 30.44. This represents a premium compared to its industry average Forward P/E of 19.81.

Meanwhile, GOOGL's PEG ratio is currently 1.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.86.

The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, 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.

To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.


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