Alphabet (GOOGL - Free Report) closed at $1,463.98 in the latest trading session, marking a +0.92% move from the prior day. This move outpaced the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq added 0.75%.
Investors will be hoping for strength from GOOGL as it approaches its next earnings release. On that day, GOOGL is projected to report earnings of $8.50 per share, which would represent a year-over-year decline of 40.18%. Our most recent consensus estimate is calling for quarterly revenue of $30.42 billion, down 4.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $42.70 per share and revenue of $138.02 billion. These totals would mark changes of -13.14% and +4.75%, respectively, from last year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. GOOGL is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that GOOGL has a Forward P/E ratio of 33.98 right now. This represents a premium compared to its industry's average Forward P/E of 32.92.
We can also see that GOOGL currently has a PEG ratio of 2.11. 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 2.7 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 66, which puts it in the top 26% 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.
To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.