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Alphabet (GOOGL) Dips More Than Broader Markets: What You Should Know

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Alphabet (GOOGL - Free Report) closed the most recent trading day at $1,159.83, moving -1.58% from the previous trading session. The stock lagged the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 1.43%.

Coming into today, shares of the internet search leader had lost 3.76% in the past month. In that same time, the Computer and Technology sector gained 1.71%, while the S&P 500 gained 2.44%.

Investors will be hoping for strength from GOOGL as it approaches its next earnings release, which is expected to be October 25, 2018. The company is expected to report EPS of $10.49, up 9.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $27.25 billion, up 22.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $39.92 per share and revenue of $109.60 billion. These totals would mark changes of +24.56% and +22.9%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for GOOGL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.63% lower. GOOGL is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note GOOGL's current valuation metrics, including its Forward P/E ratio of 27.74. For comparison, its industry has an average Forward P/E of 32.44, which means GOOGL is trading at a discount to the group.

Also, we should mention that GOOGL has a PEG ratio of 1.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 3.87 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 150, putting it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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