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Alphabet Inc. (GOOG) Gains But Lags Market: What You Should Know

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In the latest trading session, Alphabet Inc. (GOOG) closed at $2,876.44, marking a +0.6% move from the previous day. This move lagged the S&P 500's daily gain of 0.74%.

Heading into today, shares of the company had gained 2.84% over the past month, outpacing the Computer and Technology sector's loss of 0.81% and the S&P 500's gain of 1.34% in that time.

Investors will be hoping for strength from GOOG as it approaches its next earnings release, which is expected to be October 26, 2021. The company is expected to report EPS of $23.13, up 41.04% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $51.8 billion, up 36.29% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $101.87 per share and revenue of $206.5 billion. These totals would mark changes of +73.81% and +37.9%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for GOOG. 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, 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 0.01% higher. GOOG is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that GOOG has a Forward P/E ratio of 28.07 right now. For comparison, its industry has an average Forward P/E of 28.07, which means GOOG is trading at a no noticeable deviation to the group.

It is also worth noting that GOOG currently has a PEG ratio of 1.86. 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. Internet - Services stocks are, on average, holding a PEG ratio of 4.32 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 103, putting it in the top 41% 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.

To follow GOOG in the coming trading sessions, be sure to utilize Zacks.com.


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