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Alphabet (GOOGL) Rises Higher Than Market: Key Facts
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In the latest trading session, Alphabet (GOOGL - Free Report) closed at $299.99, marking a +1.43% move from the previous day. This change outpaced the S&P 500's 0.44% gain on the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.
Shares of the internet search leader witnessed a loss of 0.92% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.47%, and the S&P 500's loss of 3.31%.
Market participants will be closely following the financial results of Alphabet in its upcoming release. On that day, Alphabet is projected to report earnings of $2.76 per share, which would represent a year-over-year decline of 1.78%. Alongside, our most recent consensus estimate is anticipating revenue of $91.69 billion, indicating a 19.88% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.61 per share and revenue of $407.2 billion, which would represent changes of +7.4% and +18.75%, respectively, from the prior 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Alphabet currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 25.49. This signifies a premium in comparison to the average Forward P/E of 13.98 for its industry.
Also, we should mention that GOOGL has a PEG ratio of 1.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Alphabet (GOOGL) Rises Higher Than Market: Key Facts
In the latest trading session, Alphabet (GOOGL - Free Report) closed at $299.99, marking a +1.43% move from the previous day. This change outpaced the S&P 500's 0.44% gain on the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.
Shares of the internet search leader witnessed a loss of 0.92% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.47%, and the S&P 500's loss of 3.31%.
Market participants will be closely following the financial results of Alphabet in its upcoming release. On that day, Alphabet is projected to report earnings of $2.76 per share, which would represent a year-over-year decline of 1.78%. Alongside, our most recent consensus estimate is anticipating revenue of $91.69 billion, indicating a 19.88% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.61 per share and revenue of $407.2 billion, which would represent changes of +7.4% and +18.75%, respectively, from the prior 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Alphabet currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 25.49. This signifies a premium in comparison to the average Forward P/E of 13.98 for its industry.
Also, we should mention that GOOGL has a PEG ratio of 1.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.