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

Alphabet Inc. (GOOG) ended the recent trading session at $175.13, demonstrating a +0.41% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.15% gain on the day. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.17%.

Heading into today, shares of the company had gained 2.7% over the past month, lagging the Computer and Technology sector's gain of 5.13% and the S&P 500's gain of 3.2% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Alphabet Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.87, reflecting a 29.86% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $70.55 billion, reflecting a 13.67% rise from the equivalent quarter last year.

GOOG's full-year Zacks Consensus Estimates are calling for earnings of $7.69 per share and revenue of $291.26 billion. These results would represent year-over-year changes of +32.59% and +13.55%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Alphabet Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.4% higher. Alphabet Inc. currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Alphabet Inc. has a Forward P/E ratio of 22.67 right now. This signifies no noticeable deviation in comparison to the average Forward P/E of 22.67 for its industry.

We can also see that GOOG currently has a PEG ratio of 1.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 2.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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

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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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