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Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know

Alphabet (GOOGL) closed at $1,084.41 in the latest trading session, marking a +0.54% move from the prior day. This change outpaced the S&P 500's 0.22% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.

Heading into today, shares of the internet search leader had gained 9.54% over the past month, outpacing the Computer and Technology sector's gain of 7.59% and the S&P 500's gain of 9.27% in that time.

Wall Street will be looking for positivity from GOOGL as it approaches its nex t earnings report date. This is expected to be February 4, 2019. The company is expected to report EPS of $11.12, up 14.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.26 billion, up 20.84% from the year-ago period.

Any recent changes to analyst estimates for GOOGL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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 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. The Zacks Consensus EPS estimate has moved 0.18% lower within the past month. GOOGL currently has a Zacks Rank of #3 (Hold).

Investors should also note GOOGL's current valuation metrics, including its Forward P/E ratio of 22.77. This valuation marks a discount compared to its industry's average Forward P/E of 27.79.

Meanwhile, GOOGL's PEG ratio is currently 1.26. 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. GOOGL's industry had an average PEG ratio of 2.43 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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 GOOGL in the coming trading sessions, be sure to utilize 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.


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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