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

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In the latest trading session, Alphabet (GOOGL - Free Report) closed at $1,231.52, marking a +0.41% move from the previous day. This change outpaced the S&P 500's 0.05% gain on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.3%.

Prior to today's trading, shares of the internet search leader had gained 3.2% over the past month. This has lagged the Computer and Technology sector's gain of 3.73% and outpaced the S&P 500's gain of 3.08% in that time.

Wall Street will be looking for positivity from GOOGL as it approaches its next earnings report date. This is expected to be April 29, 2019. The company is expected to report EPS of $10.56, up 6.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $29.98 billion, up 20.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $47.49 per share and revenue of $131.93 billion, which would represent changes of +8.67% and +19.84%, respectively, from the prior year.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. GOOGL is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that GOOGL has a Forward P/E ratio of 25.83 right now. This represents a discount compared to its industry's average Forward P/E of 29.76.

Investors should also note that GOOGL has a PEG ratio of 1.44 right now. 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 3.29 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 154, putting it in the bottom 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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