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Alphabet (GOOGL) Exceeds Market Returns: Some Facts to Consider
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Alphabet (GOOGL - Free Report) ended the recent trading session at $366.46, demonstrating a +1.82% change from the preceding day's closing price. This change outpaced the S&P 500's 0.72% gain on the day. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.12%.
The internet search leader's stock has dropped by 2.34% in the past month, exceeding the Computer and Technology sector's loss of 6.12% and lagging the S&P 500's loss of 0.9%.
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. Meanwhile, our latest consensus estimate is calling for revenue of $101.22 billion, up 23.86% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.32 per share and revenue of $423.63 billion, which would represent changes of +32.47% and +23.54%, respectively, from the prior year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.18% higher. Alphabet is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Alphabet is presently being traded at a Forward P/E ratio of 25.13. For comparison, its industry has an average Forward P/E of 15.37, which means Alphabet is trading at a premium to the group.
Also, we should mention that GOOGL has a PEG ratio of 1.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Services stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Alphabet (GOOGL) Exceeds Market Returns: Some Facts to Consider
Alphabet (GOOGL - Free Report) ended the recent trading session at $366.46, demonstrating a +1.82% change from the preceding day's closing price. This change outpaced the S&P 500's 0.72% gain on the day. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.12%.
The internet search leader's stock has dropped by 2.34% in the past month, exceeding the Computer and Technology sector's loss of 6.12% and lagging the S&P 500's loss of 0.9%.
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. Meanwhile, our latest consensus estimate is calling for revenue of $101.22 billion, up 23.86% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.32 per share and revenue of $423.63 billion, which would represent changes of +32.47% and +23.54%, respectively, from the prior year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.18% higher. Alphabet is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Alphabet is presently being traded at a Forward P/E ratio of 25.13. For comparison, its industry has an average Forward P/E of 15.37, which means Alphabet is trading at a premium to the group.
Also, we should mention that GOOGL has a PEG ratio of 1.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Services stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.