Alphabet (GOOGL) closed the most recent trading day at $122.98, moving -0.56% from the previous trading session. This change was narrower than the S&P 500's 0.61% loss on the day. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq gained 10.45%.
Prior to today's trading, shares of the internet search leader had gained 17.42% over the past month. This has outpaced the Computer and Technology sector's gain of 9.91% and the S&P 500's gain of 1.05% in that time.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. On that day, Alphabet is projected to report earnings of $1.33 per share, which would represent year-over-year growth of 9.92%. Meanwhile, our latest consensus estimate is calling for revenue of $60.21 billion, up 4.76% from the prior-year quarter.
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 help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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 is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 22.87. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 22.87.
Also, we should mention that GOOGL has a PEG ratio of 1.58. 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. GOOGL's industry had an average PEG ratio of 1.6 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 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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