Back to top

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

Read MoreHide Full Article

Alphabet (GOOGL - Free Report) closed at $1,234.97 in the latest trading session, marking a +1.23% move from the prior day. This change outpaced the S&P 500's 0.29% gain on the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.3%.

Coming into today, shares of the internet search leader had gained 4.79% in the past month. In that same time, the Computer and Technology sector gained 3.47%, while the S&P 500 gained 2.99%.

Investors will be hoping for strength from GOOGL as it approaches its next earnings release. On that day, GOOGL is projected to report earnings of $12.55 per share, which would represent a year-over-year decline of 3.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.79 billion, up 20.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $49.61 per share and revenue of $132.41 billion. These totals would mark changes of +13.52% and +20.27%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for GOOGL. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% higher. GOOGL currently has a Zacks Rank of #2 (Buy).

Investors should also note GOOGL's current valuation metrics, including its Forward P/E ratio of 24.59. This represents a discount compared to its industry's average Forward P/E of 26.42.

Investors should also note that GOOGL has a PEG ratio of 1.41 right now. 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. The Internet - Services industry currently had an average PEG ratio of 2.4 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 30% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Alphabet Inc. (GOOGL) - free report >>

Published in