Alphabet Inc. (GOOG) closed at $166.01 in the latest trading session, marking a -1.03% move from the prior day. This move lagged the S&P 500’s daily gain of 0.96%. Elsewhere, the Dow saw an upswing of 0.89%, while the tech-heavy Nasdaq appreciated by 0.94%.
The company’s shares have seen a decrease of 1.1% over the last month, not keeping up with the Computer and Technology sector’s gain of 2.53% and the S&P 500’s gain of 0.5%.
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The upcoming earnings release of Alphabet Inc. will be of great interest to investors. The company’s upcoming EPS is projected at $2.12, signifying a 12.17% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $78.88 billion, up 10.55% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.51 per share and revenue of $326.57 billion. These totals would mark changes of +18.28% and +10.66%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Alphabet Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Alphabet Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Alphabet Inc. is currently trading at a Forward P/E ratio of 17.64. This denotes no noticeable deviation relative to the industry average Forward P/E of 17.64.
We can additionally observe that GOOG currently boasts a PEG ratio of 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Internet – Services stocks are, on average, holding a PEG ratio of 1.31 based on yesterday’s closing prices.
The Internet – Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 139, this industry ranks in the bottom 44% of all industries, numbering over 250.
