In the latest market close, Alphabet (GOOGL) reached $159.07, with a +1.23% movement compared to the previous day. This change outpaced the S&P 500's 0.79% gain on the day. On the other hand, the Dow registered a gain of 0.78%, and the technology-centric Nasdaq increased by 0.64%.
Heading into today, shares of the internet search leader had lost 5.05% over the past month, lagging the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56% in that time.
Market participants will be closely following the financial results of Alphabet in its upcoming release. The company is forecasted to report an EPS of $2.04, showcasing a 7.94% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $75.56 billion, up 11.79% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.93 per share and revenue of $327.89 billion, indicating changes of +11.07% and +11.11%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alphabet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the past month, there's been a 0.35% rise in the Zacks Consensus EPS estimate. Alphabet is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Alphabet is at present trading with a Forward P/E ratio of 17.6. Its industry sports an average Forward P/E of 18.13, so one might conclude that Alphabet is trading at a discount comparatively.
Meanwhile, GOOGL's PEG ratio is currently 1.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry currently had an average PEG ratio of 1.18 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 142, finds itself in the bottom 43% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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