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Alphabet Inc. (GOOG) Falls More Steeply Than Broader Market: What Investors Need to Know

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The most recent trading session ended with Alphabet Inc. (GOOG - Free Report) standing at $189.70, reflecting a -0.24% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.09%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.1%.

Coming into today, shares of the company had gained 7.23% in the past month. In that same time, the Computer and Technology sector gained 3.04%, while the S&P 500 lost 0.29%.

The investment community will be paying close attention to the earnings performance of Alphabet Inc. in its upcoming release. The company is expected to report EPS of $2.12, up 29.27% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $81.42 billion, reflecting a 12.58% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.02 per share and a revenue of $294.83 billion, representing changes of +38.28% and +14.94%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Alphabet Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.25% rise in the Zacks Consensus EPS estimate. As of now, Alphabet Inc. holds a Zacks Rank of #3 (Hold).

Investors should also note Alphabet Inc.'s current valuation metrics, including its Forward P/E ratio of 23.71. This denotes no noticeable deviation relative to the industry's average Forward P/E of 23.71.

We can also see that GOOG currently has a PEG ratio of 1.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 2.06.

The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 30, placing it within the top 12% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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