Alphabet (GOOGL – Free Report) closed at $1,342.89 in the latest trading session, marking a -0.01% move from the prior day. This change was narrower than the S&P 500’s 0.11% loss on the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the internet search leader had gained 3.44% in the past month. In that same time, the Computer and Technology sector gained 1.17%, while the S&P 500 gained 1.62%.
GOOGL will be looking to display strength as it nears its next earnings release. On that day, GOOGL is projected to report earnings of $12.77 per share, which would represent no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $38.44 billion, up 20.73% from the year-ago period.
GOOGL’s full-year Zacks Consensus Estimates are calling for earnings of $46.59 per share and revenue of $132.71 billion. These results would represent year-over-year changes of +6.61% and +20.54%, respectively.
Any recent changes to analyst estimates for GOOGL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. GOOGL is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note GOOGL’s current valuation metrics, including its Forward P/E ratio of 28.83. This represents a discount compared to its industry’s average Forward P/E of 29.51.
Investors should also note that GOOGL has a PEG ratio of 1.73 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. GOOGL’s industry had an average PEG ratio of 2.69 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 80, putting 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.
You can find more information on all of these metrics, and much more, on Zacks.com.