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

In the recent trading session, Alphabet Inc. (GOOG) concluded at $165.80, marking a positive shift of +0.45% from the previous day's closing price. This performance allowed it to surpass the daily loss of the S&P 500, which dropped by 0.18%. The Dow Jones also faced a decline of 0.8%, while the technology-focused Nasdaq experienced a growth of 0.27%.

Looking back over the past month, Alphabet Inc. shares have appreciated by 0.25%. During this timeframe, the broader Computer and Technology sector saw a significant increase of 6.6%, and the S&P 500 rose by 4.46%.

Investors are keenly anticipating the upcoming earnings report from Alphabet Inc., scheduled for October 29, 2024. Analysts expect the company's earnings per share (EPS) to be $1.83, reflecting an impressive increase of 18.06% compared to the same quarter last year. The consensus estimate for total revenue stands at $72.81 billion, indicating a growth of 13.68% from the same period in the previous year.

For the entire year, Zacks Consensus Estimates forecast that Alphabet Inc. will achieve earnings of $7.64 per share and a revenue of $292.28 billion, representing increases of +31.72% and +13.94% respectively compared to the prior year.

It is crucial for investors to keep an eye on any recent adjustments in analyst estimates for Alphabet Inc. These changes often indicate the latest trends influencing the company's performance. Positive revisions in earnings estimates usually demonstrate analysts' confidence in the company's ability to generate profits.

Research has shown that alterations in earnings estimates are often linked to future stock price movements. To leverage this insight, a proprietary model called the Zacks Rank has been established, integrating these estimate changes into its ratings system.

The Zacks Rank operates on a scale from #1 (Strong Buy) to #5 (Strong Sell). This model has a verified track record of stock performance, with #1 rated stocks averaging a remarkable +25% annual return since 1988. Over the last month, the Zacks Consensus EPS estimate for Alphabet Inc. has increased by 0.08%. Currently, the company holds a Zacks Rank of #3 (Hold).

Investors should also assess the valuation of Alphabet Inc. as it currently exhibits a Forward P/E ratio of 21.6. This figure is notably lower than the average Forward P/E ratio of 37.96 within its industry.

Additionally, Alphabet Inc. possesses a PEG (Price/Earnings to Growth) ratio of 1.26, which is a useful metric compared to the P/E ratio, as it factors in expected earnings growth. In comparison, the average PEG ratio for the Internet - Services industry was assessed at 2.35 as of the previous trading session.

The Internet - Services industry falls under the larger Computer and Technology sector, with the industry ranked 72 in the Zacks Industry Rank, placing it in the top 29% out of more than 250 industries.

The Zacks Industry Rank evaluates the strength of specific industry groups based on the average Zacks Rank of the individual stocks included in those groups. Historical data illustrates that industries within the top 50% outperform those in the bottom half by a factor of 2 to 1.

Investors are encouraged to utilize resources to stay informed about these financial indicators and market metrics as they continue to develop in upcoming trading sessions.

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