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Alphabet (GOOGL) Falls More Steeply Than Broader Market: What Investors Need to Know
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Alphabet (GOOGL - Free Report) closed the most recent trading day at $349.56, moving -5.02% from the previous trading session. This change lagged the S&P 500's 0.37% loss on the day. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.
Prior to today's trading, shares of the internet search leader had lost 3.9% lagged the Computer and Technology sector's gain of 4.52% and the S&P 500's gain of 2.02%.
Analysts and investors alike will be keeping a close eye on the performance of Alphabet in its upcoming earnings disclosure. On that day, Alphabet is projected to report earnings of $2.86 per share, which would represent year-over-year growth of 23.81%. 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.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $14.3 per share and revenue of $422.05 billion. These results would represent year-over-year changes of +32.28% and +23.08%, respectively.
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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Right now, Alphabet possesses a Zacks Rank of #3 (Hold).
Investors should also note Alphabet's current valuation metrics, including its Forward P/E ratio of 25.74. For comparison, its industry has an average Forward P/E of 14.72, which means Alphabet is trading at a premium to the group.
Investors should also note that GOOGL has a PEG ratio of 1.57 right now. 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 1.61.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 38% of all industries, numbering over 250.
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.
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) Falls More Steeply Than Broader Market: What Investors Need to Know
Alphabet (GOOGL - Free Report) closed the most recent trading day at $349.56, moving -5.02% from the previous trading session. This change lagged the S&P 500's 0.37% loss on the day. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.
Prior to today's trading, shares of the internet search leader had lost 3.9% lagged the Computer and Technology sector's gain of 4.52% and the S&P 500's gain of 2.02%.
Analysts and investors alike will be keeping a close eye on the performance of Alphabet in its upcoming earnings disclosure. On that day, Alphabet is projected to report earnings of $2.86 per share, which would represent year-over-year growth of 23.81%. 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.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $14.3 per share and revenue of $422.05 billion. These results would represent year-over-year changes of +32.28% and +23.08%, respectively.
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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Right now, Alphabet possesses a Zacks Rank of #3 (Hold).
Investors should also note Alphabet's current valuation metrics, including its Forward P/E ratio of 25.74. For comparison, its industry has an average Forward P/E of 14.72, which means Alphabet is trading at a premium to the group.
Investors should also note that GOOGL has a PEG ratio of 1.57 right now. 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 1.61.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 38% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.