Alphabet Inc. (GOOG) closed the most recent trading day at $315.68, moving +1.4% from the previous trading session. The stock’s performance was ahead of the S&P 500’s daily gain of 0.46%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.57%.
Shares of the company witnessed a loss of 2.24% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.54%, and the S&P 500’s gain of 4.22%.
Analysts and investors alike will be keeping a close eye on the performance of Alphabet Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.59, indicating a 20.47% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $94.6 billion, up 15.91% from the year-ago period.
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 +15.3%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Alphabet Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.05% upward. At present, Alphabet Inc. boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alphabet Inc. has a Forward P/E ratio of 29.42 right now. This represents a premium compared to its industry average Forward P/E of 20.08.
We can also see that GOOG currently has a PEG ratio of 1.79. 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 1.79 at the close of the market yesterday.
The Internet – Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250.
