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Meta Platforms (FB) Dips More Than Broader Markets: What You Should Know
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Meta Platforms (FB - Free Report) closed at $213.46 in the latest trading session, marking a -1.47% move from the prior day. This change lagged the S&P 500's daily loss of 1.23%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Heading into today, shares of the social media company had gained 7.21% over the past month, outpacing the Computer and Technology sector's gain of 4.45% and the S&P 500's gain of 5.04% 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 $2.66, down 19.39% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.51 billion, up 8.94% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.61 per share and revenue of $132.48 billion, which would represent changes of -8.42% and +12.34%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Meta Platforms. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.84% higher. Meta Platforms is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Meta Platforms is currently trading at a Forward P/E ratio of 17.18. Its industry sports an average Forward P/E of 49.93, so we one might conclude that Meta Platforms is trading at a discount comparatively.
Meanwhile, FB's PEG ratio is currently 1.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 3.02 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Meta Platforms (FB) Dips More Than Broader Markets: What You Should Know
Meta Platforms (FB - Free Report) closed at $213.46 in the latest trading session, marking a -1.47% move from the prior day. This change lagged the S&P 500's daily loss of 1.23%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Heading into today, shares of the social media company had gained 7.21% over the past month, outpacing the Computer and Technology sector's gain of 4.45% and the S&P 500's gain of 5.04% 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 $2.66, down 19.39% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.51 billion, up 8.94% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.61 per share and revenue of $132.48 billion, which would represent changes of -8.42% and +12.34%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Meta Platforms. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.84% higher. Meta Platforms is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Meta Platforms is currently trading at a Forward P/E ratio of 17.18. Its industry sports an average Forward P/E of 49.93, so we one might conclude that Meta Platforms is trading at a discount comparatively.
Meanwhile, FB's PEG ratio is currently 1.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 3.02 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.