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

In the latest trading session, Alphabet Inc. (GOOG) closed at $177.94, marking a +1.17% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.94% for the day. Elsewhere, the Dow gained 0.75%, while the tech-heavy Nasdaq added 1.52%. Shares of the company witnessed a gain of 5.05% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.9%, and the S&P 500's gain of 1.67%.Market participants will be closely following the financial results of Alphabet Inc. in its upcoming release. The company is forecasted to report an EPS of $2.12, showcasing a 12.17% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $78.88 billion, indicating a 10.55% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates are projecting earnings of $9.51 per share and revenue of $331.35 billion, which would represent changes of +18.28% and +12.28%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for Alphabet Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% increase. Alphabet Inc. is holding a Zacks Rank of #3 (Hold) right now. Looking at its valuation, Alphabet Inc. is holding a Forward P/E ratio of 18.49. For comparison, its industry has an average Forward P/E of 18.37, which means Alphabet Inc. is trading at a premium to the group. Investors should also note that GOOG has a PEG ratio of 1.24 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.36. The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 42% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks