Yahoo Finance Alphabet (GOOGL) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Alphabet (GOOGL) closed at $101.43, marking a -0.21% move from the previous day. This change lagged the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the internet search leader had lost 4.84% over the past month, lagging the Computer and Technology sector's loss of 4.64% and the S&P 500's loss of 3.29% in that time.
Wall Street will be looking for positivity from Alphabet as it approaches its next earnings report date. This is expected to be October 25, 2022. In that report, analysts expect Alphabet to post earnings of $1.25 per share. This would mark a year-over-year decline of 10.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.35 billion, up 8.83% from the year-ago period.
GOOGL's full-year Zacks Consensus Estimates are calling for earnings of $5.21 per share and revenue of $236.72 billion. These results would represent year-over-year changes of -7.13% and +11.63%, respectively.
Investors might also notice recent changes to analyst estimates for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. Alphabet is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 19.51. This valuation marks a discount compared to its industry's average Forward P/E of 19.95.
Also, we should mention that GOOGL has a PEG ratio of 1.64. 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. The Internet - Services was holding an average PEG ratio of 1.65 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow GOOGL in the coming trading sessions, be sure to utilize Zacks.com.
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