Back to top

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

Read MoreHide Full Article

Alphabet (GOOG - Free Report) closed the most recent trading day at $1,078.93, moving -0.13% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Coming into today, shares of the internet search leader had lost 4.56% in the past month. In that same time, the Computer and Technology sector lost 1.99%, while the S&P 500 gained 0.34%.

Wall Street will be looking for positivity from GOOG as it approaches its next earnings report date. The company is expected to report EPS of $11.48, down 2.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $30.90 billion, up 17.76% from the prior-year quarter.

GOOG's full-year Zacks Consensus Estimates are calling for earnings of $45.59 per share and revenue of $130.18 billion. These results would represent year-over-year changes of +4.32% and +18.25%, respectively.

Investors should also note any recent changes to analyst estimates for GOOG. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. GOOG is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, GOOG currently has a Forward P/E ratio of 23.7. This represents a discount compared to its industry's average Forward P/E of 31.13.

It is also worth noting that GOOG currently has a PEG ratio of 1.35. 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. GOOG's industry had an average PEG ratio of 2.9 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 106, putting it in the top 42% 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.

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 >>

Published in