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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
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Alphabet (GOOGL - Free Report) ended the recent trading session at $368.56, demonstrating a +2.47% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.65%. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 3.07%.
Prior to today's trading, shares of the internet search leader had lost 9.35% lagged the Computer and Technology sector's gain of 0.33% and the S&P 500's gain of 0.48%.
Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.86, indicating a 23.81% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $101 billion, reflecting a 23.59% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.3 per share and revenue of $422.05 billion, indicating changes of +32.28% and +23.08%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Alphabet. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has shifted 0.05% 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 25.15. This indicates a premium in contrast to its industry's Forward P/E of 16.27.
Meanwhile, GOOGL's PEG ratio is currently 1.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.67.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 33% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
Alphabet (GOOGL - Free Report) ended the recent trading session at $368.56, demonstrating a +2.47% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.65%. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 3.07%.
Prior to today's trading, shares of the internet search leader had lost 9.35% lagged the Computer and Technology sector's gain of 0.33% and the S&P 500's gain of 0.48%.
Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.86, indicating a 23.81% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $101 billion, reflecting a 23.59% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.3 per share and revenue of $422.05 billion, indicating changes of +32.28% and +23.08%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Alphabet. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has shifted 0.05% 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 25.15. This indicates a premium in contrast to its industry's Forward P/E of 16.27.
Meanwhile, GOOGL's PEG ratio is currently 1.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.67.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 33% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.