In the latest trading session, Alphabet Inc. (GOOG – Free Report) closed at $172.13, marking a +1.13% move from the previous day. The stock’s performance was behind the S&P 500’s daily gain of 1.59%. On the other hand, the Dow registered a gain of 1.39%, and the technology-centric Nasdaq increased by 1.63%.
Shares of the company have depreciated by 16% over the course of the past month, underperforming the Computer and Technology sector’s loss of 3.43% and the S&P 500’s loss of 2.42%.
The investment community will be closely monitoring the performance of Alphabet Inc. in its forthcoming earnings report. In that report, analysts expect Alphabet Inc. to post earnings of $2.04 per share. This would mark year-over-year growth of 7.94%. Alongside, our most recent consensus estimate is anticipating revenue of $75.67 billion, indicating a 11.94% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.89 per share and revenue of $334.55 billion, indicating changes of +10.57% and +13.36%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Alphabet Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there’s been a 0.53% fall in the Zacks Consensus EPS estimate. Alphabet Inc. currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Alphabet Inc. is currently being traded at a Forward P/E ratio of 19.15. This valuation marks a discount compared to its industry’s average Forward P/E of 23.71.
It is also worth noting that GOOG currently has a PEG ratio of 1.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. GOOG’s industry had an average PEG ratio of 1.7 as of yesterday’s close.
The Internet – Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 142, finds itself in the bottom 44% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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