Alphabet Inc. (GOOG) closed the most recent trading day at $166.39, moving +1.14% from the previous trading session. The stock’s change was more than the S&P 500’s daily gain of 0.77%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.87%.
Shares of the company have appreciated by 3.88% over the course of the past month, underperforming the Computer and Technology sector’s gain of 6.36% and the S&P 500’s gain of 4.87%.
Market participants will be closely following the financial results of Alphabet Inc. in its upcoming release. On that day, Alphabet Inc. is projected to report earnings of $1.83 per share, which would represent year-over-year growth of 18.06%. At the same time, our most recent consensus estimate is projecting a revenue of $72.78 billion, reflecting a 13.62% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.64 per share and a revenue of $292.21 billion, signifying shifts of +31.72% and +13.92%, respectively, from the last year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Alphabet Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 shifted 0.07% upward. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Alphabet Inc. is currently exchanging hands at a Forward P/E ratio of 21.54. For comparison, its industry has an average Forward P/E of 36.79, which means Alphabet Inc. is trading at a discount to the group.
Investors should also note that GOOG has a PEG ratio of 1.22 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. As the market closed yesterday, the Internet – Services industry was having an average PEG ratio of 2.3.
The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Alphabet Inc. (GOOG) : Free Stock Analysis Report
