Is Most-Watched Stock Alphabet Inc. (GOOGL) Worth Betting on Now?

Core Viewpoint - Alphabet (GOOGL) has shown a positive stock performance recently, with a return of +5.9% over the past month, outperforming the S&P 500 composite's +5.4% and the Zacks Internet - Services industry's +4.9% [1] Earnings Estimates Revisions - For the current quarter, Alphabet is expected to report earnings of $2.14 per share, reflecting a +13.2% change year-over-year, with the Zacks Consensus Estimate having increased by +1.3% in the last 30 days [4] - The consensus earnings estimate for the current fiscal year stands at $9.57, indicating a +19% change from the previous year, with a slight increase of +0.4% over the last month [4] - For the next fiscal year, the consensus estimate is $10.23, showing a +6.9% change from the prior year, although this estimate has decreased by -0.5% recently [5] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $79.25 billion, representing an +11.1% year-over-year change [10] - For the current fiscal year, the sales estimate is $328.14 billion, indicating a +11.2% change, while the next fiscal year's estimate of $363.32 billion reflects a +10.7% change [10] Last Reported Results and Surprise History - Alphabet reported revenues of $76.49 billion in the last quarter, a +13.2% year-over-year increase, with an EPS of $2.81 compared to $1.89 a year ago [11] - The company exceeded the Zacks Consensus Estimate for revenues by +1.27% and for EPS by +39.11% [11] - Alphabet has consistently beaten consensus EPS and revenue estimates over the last four quarters [12] Valuation - Alphabet's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for assessing whether the stock is fairly valued [13][14] - The Zacks Value Style Score grades Alphabet as a C, indicating it is trading at par with its peers [16] Conclusion - The information presented suggests that Alphabet may perform in line with the broader market in the near term, as indicated by its Zacks Rank 3 [17]