In the latest trading session, Alphabet (GOOGL) closed at $322.03, marking a +2.45% move from the previous day. The stock’s change was more than the S&P 500’s daily loss of 0.34%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq increased by 0.16%.
Shares of the internet search leader witnessed a loss of 0.86% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1%, and underperforming the S&P 500’s gain of 1.19%.
The upcoming earnings release of Alphabet will be of great interest to investors. The company’s upcoming EPS is projected at $2.59, signifying a 20.47% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $94.6 billion, showing a 15.91% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.58 per share and a revenue of $340.26 billion, signifying shifts of +31.59% and 0%, respectively, from the last 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.39% increase. Right now, Alphabet possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Alphabet is at present trading with a Forward P/E ratio of 28.47. This indicates a premium in contrast to its industry’s Forward P/E of 17.8.
One should further note that GOOGL currently holds a PEG ratio of 1.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The average PEG ratio for the Internet – Services industry stood at 1.71 at the close of the market yesterday.
The Internet – Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 41% of all 250+ industries.
