Alphabet Inc. (GOOG) Declines More Than Market: Some Information for Investors
Alphabet Inc. (GOOG) ended the recent trading session at $175.16, demonstrating a -1.35% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.07% for the day. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.03%.
Prior to today's trading, shares of the company had lost 0.04% lagged the Computer and Technology sector's gain of 5.58% and the S&P 500's gain of 3.94%.
The investment community will be closely monitoring the performance of Alphabet Inc. in its forthcoming earnings report. The company is predicted to post an EPS of $2.12, indicating a 12.17% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $78.95 billion, up 10.65% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $9.53 per share and a revenue of $326.75 billion, demonstrating changes of +18.53% and +10.72%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Alphabet Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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, the Zacks Consensus EPS estimate has moved 0.01% higher. Alphabet Inc. presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Alphabet Inc. currently has a Forward P/E ratio of 18.63. This denotes a discount relative to the industry average Forward P/E of 20.53.
Investors should also note that GOOG has a PEG ratio of 1.25 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.52.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 34% 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.
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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