Alphabet (GOOGL) Ascends While Market Falls: Some Facts to Note

Alphabet (GOOGL) ended the recent trading session at $311.69, demonstrating a +1.4% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.92%.

Shares of the internet search leader witnessed a loss of 9.13% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 3.21%, and the S&P 500's loss of 0.5%.

The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. The company's earnings per share (EPS) are projected to be $2.76, reflecting a 1.78% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $91.96 billion, indicating a 20.23% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.6 per share and a revenue of $414.99 billion, signifying shifts of +7.31% and +21.02%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Alphabet. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.92% higher within the past month. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 26.49. This signifies a premium in comparison to the average Forward P/E of 14.47 for its industry.

Meanwhile, GOOGL's PEG ratio is currently 1.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.8.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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