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Alphabet Inc. (GOOG) closed at $2,052.96 in the latest trading session, marking a +0.7% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, lost 1.12%.
Prior to today's trading, shares of the company had lost 1.27% over the past month. This has was narrower than the Computer and Technology sector's loss of 2.14% and lagged the S&P 500's gain of 1.74% in that time.
Wall Street will be looking for positivity from GOOG as it approaches its next earnings report date. In that report, analysts expect GOOG to post earnings of $15.73 per share. This would mark year-over-year growth of 59.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.18 billion, up 25.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $69.05 per share and revenue of $186.53 billion, which would represent changes of +17.81% and +24.56%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GOOG. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. GOOG is currently a Zacks Rank #3 (Hold).
In terms of valuation, GOOG is currently trading at a Forward P/E ratio of 29.53. For comparison, its industry has an average Forward P/E of 29.47, which means GOOG is trading at a premium to the group.
Investors should also note that GOOG has a PEG ratio of 1.66 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 2.06 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 145, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.