We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Meta Platforms (META) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Meta Platforms (META - Free Report) closed at $140.28 in the latest trading session, marking a +1.2% move from the prior day. The stock lagged the S&P 500's daily gain of 3.06%. Elsewhere, the Dow gained 2.8%, while the tech-heavy Nasdaq added 0.18%.
Heading into today, shares of the social media company had lost 13.54% over the past month, lagging the Computer and Technology sector's loss of 7.96% and the S&P 500's loss of 6.15% in that time.
Wall Street will be looking for positivity from Meta Platforms as it approaches its next earnings report date. The company is expected to report EPS of $1.93, down 40.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $27.44 billion, down 5.41% from the year-ago period.
META's full-year Zacks Consensus Estimates are calling for earnings of $9.90 per share and revenue of $116.22 billion. These results would represent year-over-year changes of -28.1% and -1.45%, respectively.
Any recent changes to analyst estimates for Meta Platforms should also be noted by investors. 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.
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.
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. The Zacks Consensus EPS estimate has moved 3.22% higher within the past month. Meta Platforms currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 14.01. For comparison, its industry has an average Forward P/E of 44.51, which means Meta Platforms is trading at a discount to the group.
We can also see that META currently has a PEG ratio of 1.78. 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 2.25 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Meta Platforms (META) Gains But Lags Market: What You Should Know
Meta Platforms (META - Free Report) closed at $140.28 in the latest trading session, marking a +1.2% move from the prior day. The stock lagged the S&P 500's daily gain of 3.06%. Elsewhere, the Dow gained 2.8%, while the tech-heavy Nasdaq added 0.18%.
Heading into today, shares of the social media company had lost 13.54% over the past month, lagging the Computer and Technology sector's loss of 7.96% and the S&P 500's loss of 6.15% in that time.
Wall Street will be looking for positivity from Meta Platforms as it approaches its next earnings report date. The company is expected to report EPS of $1.93, down 40.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $27.44 billion, down 5.41% from the year-ago period.
META's full-year Zacks Consensus Estimates are calling for earnings of $9.90 per share and revenue of $116.22 billion. These results would represent year-over-year changes of -28.1% and -1.45%, respectively.
Any recent changes to analyst estimates for Meta Platforms should also be noted by investors. 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.
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.
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. The Zacks Consensus EPS estimate has moved 3.22% higher within the past month. Meta Platforms currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 14.01. For comparison, its industry has an average Forward P/E of 44.51, which means Meta Platforms is trading at a discount to the group.
We can also see that META currently has a PEG ratio of 1.78. 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 2.25 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.