In the latest trading session, Alphabet (GOOGL - Free Report) closed at $1,044.96, marking a -0.16% move from the previous day. This move lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 1.15%, and the Nasdaq, a tech-heavy index, added 0.77%.
Heading into today, shares of the internet search leader had lost 4.38% over the past month, outpacing the Computer and Technology sector's loss of 7.6% and the S&P 500's loss of 9.35% in that time.
GOOGL will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. In that report, analysts expect GOOGL to post earnings of $10.37 per share. This would mark year-over-year growth of 6.91%. Our most recent consensus estimate is calling for quarterly revenue of $31.26 billion, up 20.83% from the year-ago period.
Investors should also note any recent changes to analyst estimates for GOOGL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. GOOGL is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, GOOGL currently has a Forward P/E ratio of 24.89. Its industry sports an average Forward P/E of 25.88, so we one might conclude that GOOGL is trading at a discount comparatively.
We can also see that GOOGL currently has a PEG ratio of 1.38. 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 1.83 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% 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.