Alphabet Inc. (GOOG) Outperforms Broader Market: What You Need to Know

Alphabet Inc. (GOOG) closed at $309.40 in the latest trading session, marking a +1.64% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.25% for the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.47%.

Shares of the company have depreciated by 0.52% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.87%, and the S&P 500's loss of 1.88%.

Market participants will be closely following the financial results of Alphabet Inc. in its upcoming release. The company is expected to report EPS of $2.76, down 1.78% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $91.69 billion, reflecting a 19.88% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $11.6 per share and a revenue of $407.2 billion, demonstrating changes of +7.31% and +18.75%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Alphabet Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. Alphabet Inc. currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Alphabet Inc. is currently being traded at a Forward P/E ratio of 26.24. Its industry sports an average Forward P/E of 15.42, so one might conclude that Alphabet Inc. is trading at a premium comparatively.

Investors should also note that GOOG has a PEG ratio of 1.78 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. GOOG's industry had an average PEG ratio of 1.78 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 31% echelons 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Alphabet Inc. (GOOG): Free Stock Analysis Report

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

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