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Alphabet (GOOGL) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest close session, Alphabet (GOOGL - Free Report) was down 2.42% at $322.00. This move lagged the S&P 500's daily loss of 2.06%. Elsewhere, the Dow lost 1.76%, while the tech-heavy Nasdaq lost 2.39%.

Heading into today, shares of the internet search leader had gained 6.53% over the past month, outpacing the Computer and Technology sector's gain of 1.71% and the S&P 500's gain of 1.63%.

Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 4, 2026. The company is predicted to post an EPS of $2.59, indicating a 20.47% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $94.6 billion, showing a 15.9% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.58 per share and revenue of $340.26 billion. These totals would mark changes of +31.59% and 0%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Alphabet. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. At present, Alphabet boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Alphabet is presently trading at a Forward P/E ratio of 29.88. This expresses a premium compared to the average Forward P/E of 17.85 of its industry.

Meanwhile, GOOGL's PEG ratio is currently 1.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 1.76 at the close of the market yesterday.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 67, this industry ranks in the top 28% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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