Alphabet Inc. (GOOG) Gains But Lags Market: What You Should Know

Alphabet Inc. (GOOG) closed at $103.85 in the latest trading session, marking a +0.21% move from the prior day. This move lagged the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.2%.

Heading into today, shares of the company had lost 12.27% over the past month, outpacing the Computer and Technology sector's loss of 14.62% and lagging the S&P 500's loss of 9.94% in that time.

Wall Street will be looking for positivity from Alphabet Inc. as it approaches its next earnings report date. In that report, analysts expect Alphabet Inc. to post earnings of $1.25 per share. This would mark a year-over-year decline of 10.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.44 billion, up 8.99% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $236.94 billion, which would represent changes of -7.13% and +11.73%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Alphabet Inc.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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Alphabet Inc. is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 19.89. This valuation marks a discount compared to its industry's average Forward P/E of 20.91.

We can also see that GOOG currently has a PEG ratio of 1.68. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.68 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 87, which puts 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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