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Alphabet (GOOGL) Rises Higher Than Market: Key Facts
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Alphabet (GOOGL - Free Report) ended the recent trading session at $347.33, demonstrating a +1.3% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.69%.
Heading into today, shares of the internet search leader had lost 0.54% over the past month, outpacing the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 2.85%.
Market participants will be closely following the financial results of Alphabet in its upcoming release. The company is predicted to post an EPS of $2.93, indicating a 2.09% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $111.26 billion, indicating a 27.2% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.51 per share and revenue of $433.58 billion, indicating changes of +89.73% and +26.44%, respectively, compared to the previous 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. 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% downward. Alphabet currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Alphabet is currently being traded at a Forward P/E ratio of 16.81. This valuation marks a premium compared to its industry average Forward P/E of 15.73.
One should further note that GOOGL currently holds a PEG ratio of 1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.52.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 26% 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.
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) Rises Higher Than Market: Key Facts
Alphabet (GOOGL - Free Report) ended the recent trading session at $347.33, demonstrating a +1.3% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.69%.
Heading into today, shares of the internet search leader had lost 0.54% over the past month, outpacing the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 2.85%.
Market participants will be closely following the financial results of Alphabet in its upcoming release. The company is predicted to post an EPS of $2.93, indicating a 2.09% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $111.26 billion, indicating a 27.2% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.51 per share and revenue of $433.58 billion, indicating changes of +89.73% and +26.44%, respectively, compared to the previous 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. 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% downward. Alphabet currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Alphabet is currently being traded at a Forward P/E ratio of 16.81. This valuation marks a premium compared to its industry average Forward P/E of 15.73.
One should further note that GOOGL currently holds a PEG ratio of 1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.52.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 26% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.