In the latest trading session, Alphabet (GOOGL) closed at $1,433.52, marking a +1.08% move from the previous day. This change outpaced the S&P 500's 0.48% gain on the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.29%.
Investors will be hoping for strength from GOOGL as it approaches its next earnings release. In that report, analysts expect GOOGL to post earnings of $8.55 per share. This would mark a year-over-year decline of 39.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.38 billion, down 4.19% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $41.47 per share and revenue of $137.88 billion. These totals would mark changes of -15.64% and +4.64%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for GOOGL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.62% higher. GOOGL is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, GOOGL is currently trading at a Forward P/E ratio of 34.2. This represents a premium compared to its industry's average Forward P/E of 31.03.
We can also see that GOOGL currently has a PEG ratio of 2.13. 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 2.51 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 26, which puts it in the top 11% 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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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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