Back to top

Image: Bigstock

Alphabet Inc. (GOOG) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

Alphabet Inc. (GOOG - Free Report) ended the recent trading session at $165.80, demonstrating a +0.45% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.18%. Meanwhile, the Dow experienced a drop of 0.8%, and the technology-dominated Nasdaq saw an increase of 0.27%.

Coming into today, shares of the company had gained 0.25% in the past month. In that same time, the Computer and Technology sector gained 6.6%, while the S&P 500 gained 4.46%.

The investment community will be paying close attention to the earnings performance of Alphabet Inc. in its upcoming release. The company is slated to reveal its earnings on October 29, 2024. The company's upcoming EPS is projected at $1.83, signifying a 18.06% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $72.81 billion, up 13.68% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.64 per share and revenue of $292.28 billion, indicating changes of +31.72% and +13.94%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Alphabet Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

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 shifted 0.08% upward. Alphabet Inc. presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Alphabet Inc. has a Forward P/E ratio of 21.6 right now. This expresses a discount compared to the average Forward P/E of 37.96 of its industry.

One should further note that GOOG currently holds a PEG ratio of 1.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 2.35.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


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


Alphabet Inc. (GOOG) - free report >>

Published in