Meta Platforms (FB) closed at $338.54 in the latest trading session, marking a +0.65% move from the prior day. This change outpaced the S&P 500’s 0.64% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.
Heading into today, shares of the social media company had gained 9.62% over the past month, outpacing the Computer and Technology sector’s gain of 1.46% and the S&P 500’s gain of 4.56% in that time.
Investors will be hoping for strength from Meta Platforms as it approaches its next earnings release. The company is expected to report EPS of $3.09, down 20.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $33 billion, up 17.56% from the prior-year quarter.
Any recent changes to analyst estimates for Meta Platforms should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Meta Platforms is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Meta Platforms has a Forward P/E ratio of 24.18 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 61.76.
It is also worth noting that FB currently has a PEG ratio of 1.2. 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. FB’s industry had an average PEG ratio of 3.31 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FB in the coming trading sessions, be sure to utilize Zacks.com.
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