Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Alphabet (GOOGL) closed at $1,053.18, marking a +0.63% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.18%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 0.74%.
Heading into today, shares of the internet search leader had lost 4.39% over the past month, outpacing the Computer and Technology sector's loss of 7.12% and the S&P 500's loss of 6.19% in that time.
Investors will be hoping for strength from GOOGL as it approaches its next earnings release, which is expected to be February 7, 2019. In that report, analysts expect GOOGL to post earnings of $11.01 per share. This would mark year-over-year growth of 13.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.26 billion, up 20.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $42.01 per share and revenue of $109.51 billion, which would represent changes of +31.08% and +22.79%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GOOGL. Recent revisions tend to reflect the latest near-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. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. GOOGL is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, GOOGL is currently trading at a Forward P/E ratio of 24.92. This valuation marks a discount compared to its industry's average Forward P/E of 27.6.
Investors should also note that GOOGL has a PEG ratio of 1.38 right now. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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