Why Alphabet Inc. (GOOG) Outpaced the Stock Market Today

Alphabet Inc. (GOOG) closed the most recent trading day at $294.90, moving +2.8% from the previous trading session. This change outpaced the S&P 500's 0.72% gain on the day. At the same time, the Dow added 0.48%, and the tech-heavy Nasdaq gained 1.16%.

Shares of the company witnessed a loss of 5.5% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.35%, and the S&P 500's loss of 4.99%.

Analysts and investors alike will be keeping a close eye on the performance of Alphabet Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.76, signifying a 1.78% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $91.69 billion, indicating a 19.88% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.61 per share and a revenue of $407.2 billion, signifying shifts of +7.4% and +18.75%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Alphabet Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 has moved 0.02% higher. Currently, Alphabet Inc. is carrying a Zacks Rank of #3 (Hold).

Investors should also note Alphabet Inc.'s current valuation metrics, including its Forward P/E ratio of 24.72. This denotes a premium relative to the industry average Forward P/E of 15.39.

Investors should also note that GOOG has a PEG ratio of 1.76 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry currently had an average PEG ratio of 1.76 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 175, which puts it in the bottom 29% 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.

To follow GOOG in the coming trading sessions, be sure to utilize Zacks.com.

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

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