Alphabet (GOOGL) closed at $2,778.28 in the latest trading session, marking a -0.62% move from the prior day. This change was narrower than the S&P 500’s daily loss of 0.69%.
Heading into today, shares of the internet search leader had lost 0.77% over the past month, outpacing the Computer and Technology sector’s loss of 5.77% and the S&P 500’s loss of 2.58% in that time.
Investors will be hoping for strength from GOOGL as it approaches its next earnings release, which is expected to be October 26, 2021. The company is expected to report EPS of $23.12, up 40.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $51.41 billion, up 35.25% from the prior-year quarter.
GOOGL’s full-year Zacks Consensus Estimates are calling for earnings of $101.86 per share and revenue of $205.21 billion. These results would represent year-over-year changes of +73.79% and +37.04%, respectively.
It is also important to note the recent changes to analyst estimates for GOOGL. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GOOGL is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, GOOGL is holding a Forward P/E ratio of 27.45. Its industry sports an average Forward P/E of 27.48, so we one might conclude that GOOGL is trading at a discount comparatively.
Investors should also note that GOOGL has a PEG ratio of 1.82 right now. 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. GOOGL’s industry had an average PEG ratio of 3.97 as of yesterday’s close.
The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Tech IPOs With Massive Profit Potential
In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.
For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…
If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.
With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.
See Zacks Hottest Tech IPOs Now >>
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