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

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Alphabet (GOOGL - Free Report) closed the most recent trading day at $1,360.70, moving +1.03% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.91%.

Coming into today, shares of the internet search leader had gained 2.88% in the past month. In that same time, the Computer and Technology sector gained 2.68%, while the S&P 500 gained 2.64%.

Investors will be hoping for strength from GOOGL as it approaches its next earnings release. The company is expected to report EPS of $12.77, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.44 billion, up 20.73% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $46.59 per share and revenue of $132.71 billion, which would represent changes of +6.61% and +20.54%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GOOGL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. GOOGL is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, GOOGL currently has a Forward P/E ratio of 28.91. For comparison, its industry has an average Forward P/E of 31, which means GOOGL is trading at a discount to the group.

Investors should also note that GOOGL has a PEG ratio of 1.73 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. GOOGL's industry had an average PEG ratio of 2.72 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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