Alphabet (GOOG) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Alphabet (GOOG) closed at $1,092.31, marking a +0.64% move from the previous day. This move outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.62%.
Heading into today, shares of the internet search leader had lost 7.94% over the past month, lagging the Computer and Technology sector's gain of 0.35% and the S&P 500's gain of 2.08% in that time.
GOOG will be looking to display strength as it nears its next earnings release. On that day, GOOG is projected to report earnings of $11.48 per share, which would represent a year-over-year decline of 2.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.90 billion, up 17.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $45.59 per share and revenue of $130.18 billion. These totals would mark changes of +4.32% and +18.25%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GOOG. 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. Within the past 30 days, our consensus EPS projection remained stagnant. GOOG is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, GOOG is holding a Forward P/E ratio of 23.81. This represents a discount compared to its industry's average Forward P/E of 27.17.
Investors should also note that GOOG has a PEG ratio of 1.36 right now. 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 2.85 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 74, putting it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.