Alphabet Inc. (GOOG) Stock Drops Despite Market Gains: Important Facts to Note
Alphabet Inc. (GOOG) experienced a slight drop in stock price during the latest trading session, closing at $147.71. This marks a -0.18% move from the prior day. Unfortunately, the company fell short of the S&P 500, which registered a gain of 0.22%. While the Dow gained 0.36% and the tech-heavy Nasdaq added 0.32%, Alphabet Inc. faced a minor setback.
Despite this setback, Alphabet Inc.’s stock has actually seen an overall climb of 3.68% in the past month. This outperformed the Computer and Technology sector’s gain of 3.64% and the S&P 500’s gain of 1.61%. This indicates that Alphabet Inc. has managed to outperform its peers and the broader market within a short span of time.
Investors and analysts alike are eagerly awaiting Alphabet Inc.’s forthcoming earnings report. The company is set to release its earnings on January 30, 2024. Analysts project that the upcoming EPS will be $1.60, a noteworthy 52.38% increase compared to the same quarter of the previous year. Furthermore, the estimated revenue for this quarter stands at $70.71 billion, indicating a 12.03% growth compared to the corresponding quarter of the prior year.
Analysts have recently made adjustments to their estimates for Alphabet Inc., reflecting the changing landscape of near-term business trends. Positive estimate revisions are generally seen as signs of optimism regarding the company’s business outlook.
According to empirical research, these estimate revisions often correlate with impending stock price performance. In light of this, the Zacks Rank was created as a proprietary model that integrates these estimate changes and provides a functional rating system. Alphabet Inc. currently holds a Zacks Rank of #3 (Hold), indicating that the company’s stock is worth keeping an eye on.
Valuation is another crucial factor to consider. At present, Alphabet Inc. has a Forward P/E ratio of 22.21, indicating a discount compared to its industry’s Forward P/E of 25.98. This suggests that Alphabet Inc.’s stock may be relatively undervalued within its industry.
Moreover, Alphabet Inc.’s PEG ratio, which combines the P/E ratio with the company’s expected earnings growth trajectory, currently stands at 1.32. As the market closed yesterday, the Internet – Services industry boasted an average PEG ratio of 1.93. Alphabet Inc.’s lower PEG ratio could be seen as a positive indicator for investors.
It’s worth noting that the Internet – Services industry falls within the broader Computer and Technology sector. At present, this industry holds a Zacks Industry Rank of 75, placing it within the top 30% of over 250 industries. Research has shown that industries with higher Zacks Industry Rank tend to outperform those with lower ranks.
Monitoring these stock-influencing metrics is crucial for investors, and platforms like Zacks.com can provide valuable insights. It’s important to stay informed about the performance and outlook of companies like Alphabet Inc. in order to make informed investment decisions.
In summary, despite the recent drop in stock price, Alphabet Inc. has displayed strong performance in the past month. As investors await the upcoming earnings report, positive estimate revisions and a relatively low valuation could bode well for the company’s stock. It will be interesting to see how Alphabet Inc. performs in the coming months and how it navigates the dynamic tech industry.
