Alphabet (GOOGL) closed the most recent trading day at $95.07, moving -0.59% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.61%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Coming into today, shares of the internet search leader had lost 2.85% in the past month. In that same time, the Computer and Technology sector gained 0.89%, while the S&P 500 gained 0.89%.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. On that day, Alphabet is projected to report earnings of $1.20 per share, which would represent a year-over-year decline of 21.57%. Our most recent consensus estimate is calling for quarterly revenue of $63.23 billion, up 2.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.68 per share and revenue of $234.07 billion, which would represent changes of -16.58% and +10.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Alphabet. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alphabet is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 20.44. This valuation marks a discount compared to its industry’s average Forward P/E of 20.46.
Investors should also note that GOOGL has a PEG ratio of 1.81 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Internet – Services stocks are, on average, holding a PEG ratio of 1.82 based on yesterday’s closing prices.
The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 136, putting it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.
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