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Why Alphabet Inc. (GOOG) Dipped More Than Broader Market Today

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In the latest trading session, Alphabet Inc. (GOOG - Free Report) closed at $343.56, marking a -1.71% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.11%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 1.88%.

Shares of the company have appreciated by 2.37% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.49%, and outperforming the S&P 500's gain of 2.06%.

The upcoming earnings release of Alphabet Inc. will be of great interest to investors. The company's earnings report is expected on October 28, 2026. The company's earnings per share (EPS) are projected to be $2.94, reflecting a 2.44% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $111.36 billion, up 27.31% from the prior-year quarter.

GOOG's full-year Zacks Consensus Estimates are calling for earnings of $20.54 per share and revenue of $433.8 billion. These results would represent year-over-year changes of +90.01% and +26.51%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Alphabet Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.09% upward. Right now, Alphabet Inc. possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 17.02. This indicates a premium in contrast to its industry's Forward P/E of 14.9.

Investors should also note that GOOG has a PEG ratio of 1.01 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.78 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 156, this industry ranks in the bottom 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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