Meta Platforms closed the most recent trading day at $227.85, moving -0.87% from the previous trading session. This move lagged the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Coming into today, shares of the social media company had gained 12.96% in the past month. In that same time, the Computer and Technology sector gained 5.65%, while the S&P 500 gained 6.02%.
Investors will be hoping for strength from Meta Platforms as it approaches its next earnings release. In that report, analysts expect Meta Platforms to post earnings of $2.66 per share. This would mark a year-over-year decline of 19.39%. Meanwhile, our latest consensus estimate is calling for revenue of $28.51 billion, up 8.94% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.56 per share and revenue of $132.27 billion, which would represent changes of -8.79% and +12.16%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.45% 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 18.3. Its industry sports an average Forward P/E of 48.66, so we one might conclude that Meta Platforms is trading at a discount comparatively.
We can also see that FB currently has a PEG ratio of 1.37. 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 3.16 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% 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.
To follow FB in the coming trading sessions, be sure to utilize Zacks.com.