Alphabet Inc. (GOOG) Advances While Market Declines: Some Information for Investors

Alphabet Inc. (GOOG) concluded the latest trading session with its shares priced at $165.80, marking a +0.45% change from the previous day's closing price. This performance stood out as the stock outperformed the S&P 500 index, which registered a decline of 0.18%. In contrast, the Dow Jones Industrial Average dropped by 0.8%, while the tech-heavy Nasdaq posted an increase of 0.27%.

Leading into today’s market, Alphabet's stock had experienced a modest growth of 0.25% over the past month. During this same period, the broader Computer and Technology sector rose by 6.6%, and the S&P 500 increased by 4.46%.

Investors are eagerly awaiting the upcoming earnings report from Alphabet Inc., which is scheduled for release on October 29, 2024. The company is anticipated to report earnings per share (EPS) of $1.83, reflecting an 18.06% rise compared to the same quarter a year ago. Analysts currently project the quarterly revenue to reach $72.81 billion, representing a year-over-year increase of 13.68%.

For the full fiscal year, the Zacks Consensus Estimates indicate the expectation of earnings per share at $7.64 and a total revenue of $292.28 billion. These figures suggest a year-over-year change of +31.72% in earnings and a +13.94% increase in revenue.

Moreover, investors should be vigilant about any recent revisions made by analysts regarding Alphabet's estimates as these changes often reflect the latest business trends. Positive revisions indicate growing confidence from analysts in the company's future performance and profitability.

Research indicates that these estimate adjustments are often linked to stock price performance. To capitalize on these insights, a proprietary rating system known as the Zacks Rank has been implemented, which evaluates these estimate changes and provides a rating.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has demonstrated a strong track record of performance; historically, stocks rated #1 have achieved an average annual return of +25% since 1988. In the past month, the Zacks Consensus EPS estimate for Alphabet Inc. has increased by 0.08%. Currently, Alphabet holds a Zacks Rank of #3 (Hold).

Valuation metrics are also crucial for investors to consider. Alphabet Inc. is currently trading with a Forward Price-to-Earnings (P/E) ratio of 21.6, which is notably lower than the industry average Forward P/E of 37.96.

Additionally, Alphabet's PEG (Price/Earnings to Growth) ratio stands at 1.26. This ratio is akin to the classic P/E ratio but factors in the company's expected earnings growth. As of the latest close, the Online Services industry currently has an average PEG ratio of 2.35.

The Internet - Services industry, of which Alphabet is a part, falls under the broader Computer and Technology sector. At present, this industry has a Zacks Industry Rank of 72, positioning it in the top 29% of over 250 industries analyzed.

The Zacks Industry Rank evaluates the performance of specific industry groups by averaging the Zacks Rank of all listed stocks within those groups. Studies have shown that higher-rated industries tend to outperform those with lower ratings, typically by a factor of 2 to 1.

To stay informed on all the latest stock-shifting metrics, including those that could affect Alphabet's performance, investors can regularly check financial news platforms and analyst updates.

Alphabet, Market, Investors