Alphabet Inc. (GOOG) closed the most recent trading day at $165.70, moving +0.8% from the end of the previous session. The stock lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow was up 0.3% and the tech-dominated Nasdaq was up 1.45%.

Year-to-date, shares of the company had gained 9.93% over the past month, outpacing the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 5.41% in that time.

The investing community will be closely watching Alphabet Inc.'s performance in its upcoming earnings report. The company is expected to report earnings per share of $1.83, up 18.06% from the corresponding quarter last year. At the same time, our most recent consensus estimate is calling for revenue of $72.78 billion, up 13.62% from the corresponding quarter last year.

For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.63 per share and revenue of $292.21 billion, representing changes of +31.55% and +13.92%, respectively corresponds to the previous year.

Investors should also note recent revisions to analyst estimates for Alphabet Inc. These recent adjustments often reflect the changing dynamics of short-term business patterns. Therefore, positive estimate changes mean analysts are optimistic about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we have developed the Zacks Rank, a unique model which takes these estimate changes into account and provides a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an admirable track record of superior performance, independently audited, with #1 stocks generating an average annual return of +25% generated. Within the last 30 days, our consensus EPS forecast has decreased -0.01%. Alphabet Inc. currently has a Zacks Rank of #3 (Hold).

Alphabet Inc. is currently trading at a forward P/E ratio of 21.53. This represents a discount compared to its industry's average Forward P/E of 31.51.

Investors should also note that GOOG currently has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet Services industry was 2 at the close yesterday.

The Internet services industry is part of the computer and technology sector. Currently, this industry has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.

The story continues

The strength of our individual industry groups is measured using the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within those groups. Our research shows that the top rated 50% of industries outperform the bottom half by a factor of 2 to 1.

For more information on all of these metrics and much more, visit Zacks.com.

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Alphabet Inc. (GOOG): Free stock analysis report

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