The most recent trading session ended with Alphabet (GOOGL – Free Report) standing at $189.43, reflecting a +0.07% shift from the previouse trading day’s closing. The stock’s performance was ahead of the S&P 500’s daily loss of 0.22%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.
Coming into today, shares of the internet search leader had gained 8.56% in the past month. In that same time, the Computer and Technology sector gained 1.86%, while the S&P 500 lost 2.36%.
Investors will be eagerly watching for the performance of Alphabet in its upcoming earnings disclosure. The company is expected to report EPS of $2.12, up 29.27% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $81.41 billion, indicating a 12.57% upward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Alphabet. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% decrease. Alphabet currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is presently being traded at a Forward P/E ratio of 21.23. For comparison, its industry has an average Forward P/E of 22.64, which means Alphabet is trading at a discount to the group.
It is also worth noting that GOOGL currently has a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Internet – Services industry currently had an average PEG ratio of 1.45 as of yesterday’s close.
The Internet – Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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