Alphabet(US:GOOGL) ZACKSยท2025-03-27 22:51Company Performance - Alphabet's stock closed at $162.18, reflecting a -1.74% change from the previous day, underperforming the S&P 500's daily loss of 0.33% [1] - The stock has decreased by 4.44% over the past month, which is better than the Computer and Technology sector's loss of 7.14% but worse than the S&P 500's loss of 4.03% [1] Upcoming Earnings - Alphabet is expected to report an EPS of $2.02, indicating a 6.88% increase from the same quarter last year [2] - The projected revenue for the upcoming earnings is $75.65 billion, representing an 11.92% increase from the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $8.90 per share, with revenue expected to reach $330.07 billion, reflecting increases of +10.7% and +11.84% respectively from the prior year [3] Analyst Estimates - Recent changes in analyst estimates for Alphabet are important as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks Alphabet at 3 (Hold) [6] Valuation Metrics - Alphabet has a Forward P/E ratio of 18.54, which is lower than the industry average of 21.63, suggesting that Alphabet is trading at a discount [7] - The company has a PEG ratio of 1.19, compared to the industry average PEG ratio of 1.31, indicating a favorable valuation relative to expected earnings growth [8] Industry Context - The Internet - Services industry, which includes Alphabet, has a Zacks Industry Rank of 131, placing it in the bottom 48% of over 250 industries [9] - Research indicates that industries in the top 50% of the Zacks Industry Rank outperform those in the bottom half by a factor of 2 to 1 [9]