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Facebook (FB) Stock Sinks As Market Gains: What You Should Know

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Facebook (FB - Free Report) closed the most recent trading day at $351.89, moving -1.05% from the previous trading session. This change lagged the S&P 500's daily gain of 0.03%.

Heading into today, shares of the social media company had gained 8.19% over the past month, outpacing the Computer and Technology sector's gain of 6.22% and the S&P 500's gain of 2.12% in that time.

Wall Street will be looking for positivity from FB as it approaches its next earnings report date. In that report, analysts expect FB to post earnings of $3.03 per share. This would mark year-over-year growth of 68.33%. Our most recent consensus estimate is calling for quarterly revenue of $27.89 billion, up 49.25% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.18 per share and revenue of $116.21 billion, which would represent changes of +30.62% and +35.18%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for FB. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's 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. Within the past 30 days, our consensus EPS projection remained stagnant. FB is currently a Zacks Rank #3 (Hold).

In terms of valuation, FB is currently trading at a Forward P/E ratio of 26.98. This represents a discount compared to its industry's average Forward P/E of 28.83.

Also, we should mention that FB has a PEG ratio of 1.34. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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