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Facebook (FB) Dips More Than Broader Markets: What You Should Know

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Facebook (FB - Free Report) closed at $277.12 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.54%.

Heading into today, shares of the social media company had gained 0.52% over the past month, lagging the Computer and Technology sector's gain of 4.87% and the S&P 500's gain of 3.5% in that time.

FB will be looking to display strength as it nears its next earnings release. On that day, FB is projected to report earnings of $3.19 per share, which would represent year-over-year growth of 24.61%. Our most recent consensus estimate is calling for quarterly revenue of $26.12 billion, up 23.89% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.47 per share and revenue of $83.98 billion. These totals would mark changes of +47.28% and +18.79%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for FB. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. FB is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, FB is holding a Forward P/E ratio of 29.34. This represents a discount compared to its industry's average Forward P/E of 33.58.

Meanwhile, FB's PEG ratio is currently 1.59. 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 2.04 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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