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

The most recent trading session ended with Alphabet Inc. (GOOG) standing at $156.33, reflecting a -1.8% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.2% loss on the day. Elsewhere, the Dow saw a downswing of 0.65%, while the tech-heavy Nasdaq depreciated by 1.79%.

Shares of the company have appreciated by 11.97% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.51% and the S&P 500's loss of 0.85%.

The investment community will be paying close attention to the earnings performance of Alphabet Inc. in its upcoming release. The company is expected to report EPS of $1.49, up 27.35% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $66 billion, indicating a 13.66% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.78 per share and revenue of $286.47 billion, which would represent changes of +16.9% and +11.68%, respectively, from the prior year.

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Investors should also pay attention to any latest changes in analyst estimates for Alphabet Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Currently, Alphabet Inc. is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Alphabet Inc. is at present trading with a Forward P/E ratio of 23.49. This denotes no noticeable deviation relative to the industry's average Forward P/E of 23.49.

We can also see that GOOG currently has a PEG ratio of 1.47. 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. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.78.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 32% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Alphabet Inc. (GOOG) : Free Stock Analysis Report

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