Yahoo Finance Alphabet (GOOGL) Gains But Lags Market: What You Should Know
Alphabet (GOOGL) closed the most recent trading day at $2,805.67, moving +0.9% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.95%.
Prior to today's trading, shares of the internet search leader had lost 1.58% over the past month. This has lagged the Computer and Technology sector's gain of 0.28% and was narrower than the S&P 500's loss of 1.87% in that time.
Investors will be hoping for strength from GOOGL as it approaches its next earnings release. The company is expected to report EPS of $23.12, up 40.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $51.41 billion, up 35.25% from the prior-year quarter.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $101.86 per share and revenue of $205.21 billion. These results would represent year-over-year changes of +73.79% and +37.04%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 remained stagnant within the past month. GOOGL currently has a Zacks Rank of #3 (Hold).
Digging into valuation, GOOGL currently has a Forward P/E ratio of 27.3. Its industry sports an average Forward P/E of 27.42, so we one might conclude that GOOGL is trading at a discount comparatively.
Also, we should mention that GOOGL has a PEG ratio of 1.81. 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 3.93 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 169, putting it in the bottom 34% 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.
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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