Alphabet (GOOGL) Exceeds Market Returns: Some Facts to Consider

In the latest trading session, Alphabet (GOOGL) closed at $167.15, marking a +1.9% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.49% for the day. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq appreciated by 1.22%.The internet search leader's shares have seen a decrease of 11.48% over the last month, surpassing the Computer and Technology sector's loss of 12.07% and falling behind the S&P 500's loss of 8.15%.The upcoming earnings release of Alphabet will be of great interest to investors. It is anticipated that the company will report an EPS of $2.02, marking a 6.88% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $75.65 billion, indicating a 11.92% growth compared to the corresponding quarter of the prior year.For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.90 per share and a revenue of $330.07 billion, signifying shifts of +10.7% and +11.84%, respectively, from the last year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alphabet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.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, 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 a 0.01% decrease. Alphabet is currently a Zacks Rank #3 (Hold).Looking at its valuation, Alphabet is holding a Forward P/E ratio of 18.43. This indicates a discount in contrast to its industry's Forward P/E of 21.49.We can also see that GOOGL currently has a PEG ratio of 1.18. 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 1.39.The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 138, putting it in the bottom 46% of all 250+ industries.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks