Alphabet (GOOGL) Gains As Market Dips: What You Should Know
Alphabet (GOOGL) closed the most recent trading day at $2,033.93, moving +1.12% from the previous trading session. This change outpaced the S&P 500's 1.34% loss on the day. At the same time, the Dow lost 1.11%, and the tech-heavy Nasdaq lost 2.11%.
Prior to today's trading, shares of the internet search leader had lost 2.31% over the past month. This has was narrower than the Computer and Technology sector's loss of 3.71% and lagged the S&P 500's loss of 0.11% in that time.
GOOGL will be looking to display strength as it nears its next earnings release. In that report, analysts expect GOOGL to post earnings of $15.73 per share. This would mark year-over-year growth of 59.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.18 billion, up 25.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $69.05 per share and revenue of $189.52 billion. These totals would mark changes of +17.81% and +26.56%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for GOOGL. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 10.15% higher. GOOGL is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GOOGL has a Forward P/E ratio of 29.13 right now. For comparison, its industry has an average Forward P/E of 29.63, which means GOOGL is trading at a discount to the group.
Meanwhile, GOOGL's PEG ratio is currently 1.64. 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. GOOGL's industry had an average PEG ratio of 1.92 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 158, putting it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research
