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Alphabet Inc. (GOOG) Dips More Than Broader Markets: What You Should Know

Alphabet Inc. (GOOG) closed at $123.58 in the latest trading session, marking a -0.85% move from the prior day. This move lagged the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq added 10.45%.

Heading into today, shares of the company had gained 17.61% over the past month, outpacing the Computer and Technology sector's gain of 9.91% and the S&P 500's gain of 1.05% in that time.

Investors will be hoping for strength from Alphabet Inc. as it approaches its next earnings release. The company is expected to report EPS of $1.33, up 9.92% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $60.21 billion, up 4.76% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.41 per share and revenue of $248.34 billion, which would represent changes of +18.64% and +6.18%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for Alphabet Inc.These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% higher. Alphabet Inc. is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Alphabet Inc. has a Forward P/E ratio of 23.05 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.87.

It is also worth noting that GOOG currently has a PEG ratio of 1.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.6 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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 GOOG in the coming trading sessions, be sure to utilize Zacks.com.

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Alphabet Inc. (GOOG) : Free Stock Analysis Report

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