Facebook closed the most recent trading day at $163.06, moving +1.82% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.13%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the social media company had lost 7.14% over the past month, lagging the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.1% in that time.
Wall Street will be looking for positivity from FB as it approaches its next earnings report date. This is expected to be November 7, 2018. The company is expected to report EPS of $1.48, down 6.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.83 billion, up 33.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.08 per share and revenue of $55.46 billion. These totals would mark changes of +14.94% and +36.41%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for FB. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate remained stagnant. FB is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that FB has a Forward P/E ratio of 22.65 right now. For comparison, its industry has an average Forward P/E of 34.25, which means FB is trading at a discount to the group.
Investors should also note that FB has a PEG ratio of 1.03 right now. 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 2.5 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Image: Bigstock
Facebook (FB) Outpaces Stock Market Gains: What You Should Know
Facebook closed the most recent trading day at $163.06, moving +1.82% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.13%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the social media company had lost 7.14% over the past month, lagging the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.1% in that time.
Wall Street will be looking for positivity from FB as it approaches its next earnings report date. This is expected to be November 7, 2018. The company is expected to report EPS of $1.48, down 6.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.83 billion, up 33.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.08 per share and revenue of $55.46 billion. These totals would mark changes of +14.94% and +36.41%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for FB. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate remained stagnant. FB is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that FB has a Forward P/E ratio of 22.65 right now. For comparison, its industry has an average Forward P/E of 34.25, which means FB is trading at a discount to the group.
Investors should also note that FB has a PEG ratio of 1.03 right now. 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 2.5 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.