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Alphabet Inc. (GOOG) Outpaces Stock Market Gains: What You Should Know

Alphabet Inc. (GOOG) closed at $127.87 in the latest trading session, marking a +0.98% move from the prior day. This move outpaced the S&P 500's daily gain of 0.24%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.73%.

Coming into today, shares of the company had gained 16.99% in the past month. In that same time, the Computer and Technology sector gained 10.73%, while the S&P 500 gained 3.56%.

Alphabet Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alphabet Inc. to post earnings of $1.33 per share. This would mark year-over-year growth of 9.92%. Meanwhile, our latest consensus estimate is calling for revenue of $60.21 billion, up 4.76% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.41 per share and revenue of $248.34 billion. These totals would mark changes of +18.64% and +6.18%, respectively, from last year.

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Any recent changes to analyst estimates for Alphabet Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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, the Zacks Consensus EPS estimate has moved 0.4% higher. Alphabet Inc. is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Alphabet Inc.'s current valuation metrics, including its Forward P/E ratio of 23.42. This represents a premium compared to its industry's average Forward P/E of 23.3.

Meanwhile, GOOG's PEG ratio is currently 1.61. 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. The Internet - Services was holding an average PEG ratio of 1.61 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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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Alphabet Inc. (GOOG) : Free Stock Analysis Report

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