Alphabet Inc. (GOOG) closed the most recent trading day at $376.43, moving -2.51% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 0.21%.
The company's stock has climbed by 1.09% in the past month, falling short of the Computer and Technology sector's gain of 11.95% and the S&P 500's gain of 6.04%.
The investment community will be paying close attention to the earnings performance of Alphabet Inc. in its upcoming release. In that report, analysts expect Alphabet Inc. to post earnings of $2.85 per share. This would mark year-over-year growth of 23.38%. Alongside, our most recent consensus estimate is anticipating revenue of $101 billion, indicating a 23.59% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $14.29 per share and a revenue of $422.05 billion, demonstrating changes of +32.19% and +23.08%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Alphabet Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 23.98% increase. Currently, Alphabet Inc. is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alphabet Inc. has a Forward P/E ratio of 27.02 right now. This represents a premium compared to its industry average Forward P/E of 16.19.
We can additionally observe that GOOG currently boasts a PEG ratio of 1.65. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. GOOG's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Alphabet Inc. (GOOG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).