In the latest trading session, Alphabet (GOOGL - Free Report) closed at $1,052.28, marking a -0.35% move from the previous day. This change lagged the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the internet search leader had gained 2.05% over the past month. This has outpaced the Computer and Technology sector's loss of 1.56% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from GOOGL as it approaches its next earnings release, which is expected to be February 7, 2019. On that day, GOOGL is projected to report earnings of $11.01 per share, which would represent year-over-year growth of 13.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.26 billion, up 20.83% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $42.01 per share and revenue of $109.51 billion. These results would represent year-over-year changes of +31.08% and +22.79%, respectively.
Any recent changes to analyst estimates for GOOGL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. GOOGL is currently a Zacks Rank #3 (Hold).
Investors should also note GOOGL's current valuation metrics, including its Forward P/E ratio of 25.14. For comparison, its industry has an average Forward P/E of 27.15, which means GOOGL is trading at a discount to the group.
It is also worth noting that GOOGL currently has a PEG ratio of 1.39. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.17 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 80, which puts it in the top 31% 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.
To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.