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Alphabet (GOOGL) Stock Sinks As Market Gains: Here's Why

The latest trading session saw Alphabet (GOOGL) ending at $134.99, denoting a -1.42% adjustment from its last day's close. This change lagged the S&P 500's 0.41% gain on the day. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.45%.

The internet search leader's shares have seen an increase of 5.14% over the last month, not keeping up with the Computer and Technology sector's gain of 5.9% and outstripping the S&P 500's gain of 4.91%.

Analysts and investors alike will be keeping a close eye on the performance of Alphabet in its upcoming earnings disclosure. On that day, Alphabet is projected to report earnings of $1.60 per share, which would represent year-over-year growth of 52.38%. At the same time, our most recent consensus estimate is projecting a revenue of $70.64 billion, reflecting a 11.9% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.75 per share and a revenue of $254.77 billion, indicating changes of +26.1% and +8.93%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Right now, Alphabet possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Alphabet is presently being traded at a Forward P/E ratio of 23.81. This valuation marks a discount compared to its industry's average Forward P/E of 24.07.

Also, we should mention that GOOGL has a PEG ratio of 1.43. 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. The average PEG ratio for the Internet - Services industry stood at 2.22 at the close of the market yesterday.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 27% echelons 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.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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