Alphabet (GOOGL) Gains As Market Dips: What You Should Know

In the latest trading session, Alphabet (GOOGL) closed at $154.85, marking a +1.54% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.04%. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.03%.

Prior to today's trading, shares of the internet search leader had gained 12.62% over the past month. This has outpaced the Computer and Technology sector's gain of 4.26% and the S&P 500's gain of 2.57% in that time.

The upcoming earnings release of Alphabet will be of great interest to investors. In that report, analysts expect Alphabet to post earnings of $1.49 per share. This would mark year-over-year growth of 27.35%. Meanwhile, our latest consensus estimate is calling for revenue of $65.95 billion, up 13.57% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.77 per share and revenue of $290.4 billion. These totals would mark changes of +16.72% and +13.21%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Alphabet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Alphabet is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Alphabet is presently trading at a Forward P/E ratio of 22.51. Its industry sports an average Forward P/E of 23.51, so one might conclude that Alphabet is trading at a discount comparatively.

It is also worth noting that GOOGL currently has a PEG ratio of 1.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Services stocks are, on average, holding a PEG ratio of 1.82 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 57, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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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.

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