Back to top

Alphabet (GOOG) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Alphabet (GOOG - Free Report) closed the most recent trading day at $1,191.23, moving +1.32% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq added 0.44%.

Heading into today, shares of the internet search leader had gained 7.37% over the past month, outpacing the Computer and Technology sector's gain of 4.56% and the S&P 500's gain of 2.91% in that time.

GOOG will be looking to display strength as it nears its next earnings release. In that report, analysts expect GOOG to post earnings of $10.55 per share. This would mark year-over-year growth of 6.24%.

Investors should also note any recent changes to analyst estimates for GOOG. These revisions help to show the ever-changing nature of near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GOOG currently has a Zacks Rank of #3 (Hold).

In terms of valuation, GOOG is currently trading at a Forward P/E ratio of 24.82. Its industry sports an average Forward P/E of 24.89, so we one might conclude that GOOG is trading at a discount comparatively.

Investors should also note that GOOG has a PEG ratio of 1.42 right now. 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 was holding an average PEG ratio of 2.7 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Alphabet Inc. (GOOG) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in