Here's Why Alphabet Inc. (GOOG) Fell More Than Broader Market

Alphabet Inc. (GOOG) closed the most recent trading day at $348.71, moving -5.1% from the previous trading session. This change lagged the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw a decrease of 1.33%. Shares of the company witnessed a loss of 3.14% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.52%, and the S&P 500's gain of 2.02%.The investment community will be closely monitoring the performance of Alphabet Inc. in its forthcoming earnings report. The company is predicted to post an EPS of $2.86, indicating a 23.81% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $101 billion, up 23.59% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $14.3 per share and a revenue of $422.05 billion, demonstrating changes of +32.28% and +23.08%, respectively, from the preceding year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alphabet Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. Alphabet Inc. currently has a Zacks Rank of #3 (Hold). Looking at valuation, Alphabet Inc. is presently trading at a Forward P/E ratio of 25.7. This denotes a premium relative to the industry average Forward P/E of 14.72. Meanwhile, GOOG's PEG ratio is currently 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices. The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 38% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks