Yahoo Finance Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Alphabet (GOOGL) closed at $2,789.61, marking a +0.64% move from the previous day. This move outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.
Heading into today, shares of the internet search leader had lost 1.58% over the past month, outpacing the Computer and Technology sector's loss of 2.99% and lagging the S&P 500's gain of 0.64% in that time.
Alphabet will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alphabet to post earnings of $26.71 per share. This would mark year-over-year growth of 19.78%. Our most recent consensus estimate is calling for quarterly revenue of $59.3 billion, up 27.71% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Alphabet. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. Alphabet currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Alphabet is holding a Forward P/E ratio of 24.52. For comparison, its industry has an average Forward P/E of 24.55, which means Alphabet is trading at a discount to the group.
Also, we should mention that GOOGL has a PEG ratio of 0.95. 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 2.84 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 206, putting it in the bottom 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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