In the latest trading session, Alphabet (GOOGL - Free Report) closed at $1,175.06, marking a -0.16% move from the previous day. This change lagged the S&P 500's 0.19% gain on the day. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.27%.
Coming into today, shares of the internet search leader had lost 6.87% in the past month. In that same time, the Computer and Technology sector lost 0.52%, while the S&P 500 gained 0.74%.
GOOGL will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2018. In that report, analysts expect GOOGL to post earnings of $10.49 per share. This would mark year-over-year growth of 9.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.25 billion, up 22.36% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $39.92 per share and revenue of $109.60 billion. These results would represent year-over-year changes of +24.56% and +22.9%, respectively.
Investors might also notice recent changes to analyst estimates for GOOGL. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.63% lower within the past month. GOOGL is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, GOOGL is holding a Forward P/E ratio of 27.73. Its industry sports an average Forward P/E of 31.73, so we one might conclude that GOOGL is trading at a discount comparatively.
It is also worth noting that GOOGL currently has a PEG ratio of 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GOOGL's industry had an average PEG ratio of 3.68 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 113, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.