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Meta Platforms (META) Dips More Than Broader Markets: What You Should Know
Meta Platforms (META - Free Report) closed at $134.40 in the latest trading session, marking a -1.44% move from the prior day. This move lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq added 0.01%.
Prior to today's trading, shares of the social media company had lost 14.32% over the past month. This has lagged the Computer and Technology sector's loss of 11.89% and the S&P 500's loss of 9.7% in that time.
Meta Platforms will be looking to display strength as it nears its next earnings release. In that report, analysts expect Meta Platforms to post earnings of $1.94 per share. This would mark a year-over-year decline of 39.75%. Our most recent consensus estimate is calling for quarterly revenue of $27.51 billion, down 5.19% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.91 per share and revenue of $116.35 billion. These totals would mark changes of -28.03% and -1.34%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Meta Platforms. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.4% higher. Meta Platforms is currently a Zacks Rank #5 (Strong Sell).
Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 13.77. Its industry sports an average Forward P/E of 43.07, so we one might conclude that Meta Platforms is trading at a discount comparatively.
We can also see that META currently has a PEG ratio of 1.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.