Alphabet (GOOGL) stock sinks as market gains: What you need to know
Alphabet (GOOGL) closed at $101.22 in the latest trading session, up -0.39% from the previous day. The change lagged the S&P 500’s daily gain of 0.89%. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq shed 0.68%.
Heading into today, shares of the Internet search leader were up 7.71% over the past month, outpacing the computer and technology sector’s gain of 2.42% and the S&P 500’s loss of 3.9% during that time. .
Wall Street is looking for positivity from Alphabet as it nears the date of its next earnings report. The company is expected to report EPS of $1.09, down 11.38% from the prior-year quarter. Our most recent Consensus Estimate is calling for quarterly revenue of $56.89 billion, up 1.56% from the year-ago period.
For the full year, our Zacks Consensus Estimates are calling for earnings per share of $5.12 and revenue of $246.7 billion, which would represent changes of +12.28% and +5.48%, respectively, from last year.
Investors should also pay attention to recent changes in analyst estimates for Alphabet. Recent revisions reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions as a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly related to near-term share price momentum. We developed Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and provides a clear, actionable rating model.
From #1 (strong buy) to #5 (strong sell), the Zacks Rank system has a proven, externally-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Used to be. Within the past 30 days, our Consensus EPS projection has decreased by 0.51%. Alphabet currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is currently trading at a forward P/E ratio of 19.84. This represents a discount to its industry average forward P/E of 22.43.
Investors should also note that GOOGL currently has a PEG ratio of 1.4. 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. Internet-Services had an average PEG ratio of 1.4 at yesterday’s closing price.
The Internet-services industry is part of the computer and technology sector. The group has a Zacks Industry Rank of 75, placing it in the top 30% of all 250+ industries.
The Zacks Industry Rank lists individual companies within each of these sectors in order from best to worst in terms of average Zacks Ranks. Our research shows that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics and many more on Zacks.com.
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