Back to top

Image: Bigstock

Meta Platforms (META) Stock Moves -1.16%: What You Should Know

Read MoreHide Full Article

In the latest trading session, Meta Platforms (META - Free Report) closed at $199.81, marking a -1.16% move from the previous day. This change was narrower than the S&P 500's 1.65% loss on the day. At the same time, the Dow lost 1.63%, and the tech-heavy Nasdaq lost 6.65%.

Coming into today, shares of the social media company had gained 17.48% in the past month. In that same time, the Computer and Technology sector gained 7.03%, while the S&P 500 gained 0.3%.

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 $2.03, down 25.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $27.48 billion, down 1.52% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.44 per share and revenue of $122.05 billion. These totals would mark changes of +6.21% and +4.67%, respectively, from last year.

Any recent changes to analyst estimates for Meta Platforms should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 6.6% higher within the past month. Meta Platforms is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Meta Platforms currently has a Forward P/E ratio of 19.36. This valuation marks a discount compared to its industry's average Forward P/E of 44.83.

Meanwhile, META's PEG ratio is currently 1.82. 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 industry currently had an average PEG ratio of 1.67 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 69, putting it in the top 28% 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.

To follow META in the coming trading sessions, be sure to utilize

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Meta Platforms, Inc. (META) - free report >>

Published in