Alphabet (GOOGL) Outpaces Stock Market Gains: What You Should Know

Core Viewpoint - Alphabet (GOOGL) is expected to report strong financial results, with projected earnings growth and revenue increase, despite recent stock performance lagging behind the broader market and technology sector [2][3]. Financial Performance - Alphabet is projected to report earnings of $2.59 per share, representing a year-over-year growth of 20.47% [2]. - Revenue is expected to reach $94.6 billion, showing a 15.91% increase compared to the same quarter last year [2]. - For the full year, earnings are estimated at $10.58 per share and revenue at $340.26 billion, reflecting changes of +31.59% and +15.3% respectively from the previous year [3]. Analyst Estimates - Recent modifications to analyst estimates for Alphabet indicate a changing business landscape, with positive revisions suggesting a favorable business outlook [3]. - The Zacks Consensus EPS estimate has increased by 0.05% in the past month, and Alphabet currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - Alphabet has a Forward P/E ratio of 29.27, which is higher than the industry average of 20.08 [6]. - The company has a PEG ratio of 1.78, which is comparable to the industry average PEG ratio of 1.79 [7]. Industry Context - The Internet - Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 94, placing it in the top 39% of over 250 industries [8]. - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8].