The most recent trading session ended with Alphabet (GOOGL) standing at $195.30, reflecting a +1.82% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.92%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 2.03%.
Shares of the internet search leader have appreciated by 0.3% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.99% and lagging the S&P 500's gain of 0.81%.
The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. The company is slated to reveal its earnings on February 4, 2025. The company is predicted to post an EPS of $2.12, indicating a 29.27% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $81.38 billion, up 12.52% from the prior-year quarter.
Any recent changes to analyst estimates for Alphabet should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 past month, the Zacks Consensus EPS estimate has shifted 0.18% upward. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Alphabet currently has a Forward P/E ratio of 21.47. This indicates a discount in contrast to its industry's Forward P/E of 22.78.
One should further note that GOOGL currently holds a PEG ratio of 1.23. 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 industry had an average PEG ratio of 1.64 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 27% of over 250 industries.