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Alphabet (GOOGL) Increases Yet Falls Behind Market: What Investors Need to Know
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In the latest trading session, Alphabet (GOOGL - Free Report) closed at $164.38, marking a +0.86% move from the previous day. This move lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.45%.
The internet search leader's stock has climbed by 9.6% in the past month, exceeding the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 5.41%.
The upcoming earnings release of Alphabet will be of great interest to investors. On that day, Alphabet is projected to report earnings of $1.83 per share, which would represent year-over-year growth of 18.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $72.77 billion, up 13.61% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.63 per share and a revenue of $292.3 billion, signifying shifts of +31.55% and +13.95%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. Alphabet is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Alphabet is currently exchanging hands at a Forward P/E ratio of 21.35. Its industry sports an average Forward P/E of 31.51, so one might conclude that Alphabet is trading at a discount comparatively.
One should further note that GOOGL currently holds a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. GOOGL's industry had an average PEG ratio of 2 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 97, putting it in the top 39% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Alphabet (GOOGL) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest trading session, Alphabet (GOOGL - Free Report) closed at $164.38, marking a +0.86% move from the previous day. This move lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.45%.
The internet search leader's stock has climbed by 9.6% in the past month, exceeding the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 5.41%.
The upcoming earnings release of Alphabet will be of great interest to investors. On that day, Alphabet is projected to report earnings of $1.83 per share, which would represent year-over-year growth of 18.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $72.77 billion, up 13.61% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.63 per share and a revenue of $292.3 billion, signifying shifts of +31.55% and +13.95%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. Alphabet is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Alphabet is currently exchanging hands at a Forward P/E ratio of 21.35. Its industry sports an average Forward P/E of 31.51, so one might conclude that Alphabet is trading at a discount comparatively.
One should further note that GOOGL currently holds a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. GOOGL's industry had an average PEG ratio of 2 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 97, putting it in the top 39% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.