Yahoo Finance Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
Alphabet (GOOGL) closed the most recent trading day at $127.31, moving +1.03% from the previous trading session. This change outpaced the S&P 500's 0.24% gain on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.73%.
Coming into today, shares of the internet search leader had gained 16.92% in the past month. In that same time, the Computer and Technology sector gained 10.73%, while the S&P 500 gained 3.56%.
Alphabet will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.33, up 9.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $60.21 billion, up 4.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.41 per share and revenue of $248.34 billion. These totals would mark changes of +18.64% and +6.18%, respectively, from last year.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 has moved 0.4% higher. Alphabet currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 23.3. Its industry sports an average Forward P/E of 23.3, so we one might conclude that Alphabet is trading at a no noticeable deviation comparatively.
Meanwhile, GOOGL's PEG ratio is currently 1.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.61 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.
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. (GOOGL) : Free Stock Analysis Report
