In the latest close session, Alphabet Inc. (GOOG) was up +1.53% at $335.45. The stock's change was more than the S&P 500's daily gain of 0.86%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.96%.
Shares of the company have depreciated by 3.94% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.56%, and the S&P 500's loss of 1.96%.
The upcoming earnings release of Alphabet Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $2.93, marking a 2.09% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $111.44 billion, up 27.41% from the year-ago period.
GOOG's full-year Zacks Consensus Estimates are calling for earnings of $20.52 per share and revenue of $433.95 billion. These results would represent year-over-year changes of +89.82% and +26.55%, respectively.
Any recent changes to analyst estimates for Alphabet Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Currently, Alphabet Inc. is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Alphabet Inc. is currently exchanging hands at a Forward P/E ratio of 16.1. This denotes a premium relative to the industry average Forward P/E of 15.96.
One should further note that GOOG currently holds a PEG ratio of 0.96. 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 stocks are, on average, holding a PEG ratio of 1.48 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Alphabet Inc. (GOOG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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