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Meta Platforms (META) Laps the Stock Market: Here's Why
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In the latest trading session, Meta Platforms (META - Free Report) closed at $726.09, marking a +2.46% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.8%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.97%.
Heading into today, shares of the social media company had gained 10.11% over the past month, outpacing the Computer and Technology sector's gain of 8.5% and the S&P 500's gain of 5.12%.
The investment community will be paying close attention to the earnings performance of Meta Platforms in its upcoming release. It is anticipated that the company will report an EPS of $5.75, marking a 11.43% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $44.37 billion, showing a 13.55% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $25.25 per share and revenue of $185.92 billion, which would represent changes of +5.83% and +13.02%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Meta Platforms. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.39% higher. At present, Meta Platforms boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Meta Platforms is currently exchanging hands at a Forward P/E ratio of 28.07. This expresses a premium compared to the average Forward P/E of 28 of its industry.
One should further note that META currently holds a PEG ratio of 1.74. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.22.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Meta Platforms (META) Laps the Stock Market: Here's Why
In the latest trading session, Meta Platforms (META - Free Report) closed at $726.09, marking a +2.46% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.8%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.97%.
Heading into today, shares of the social media company had gained 10.11% over the past month, outpacing the Computer and Technology sector's gain of 8.5% and the S&P 500's gain of 5.12%.
The investment community will be paying close attention to the earnings performance of Meta Platforms in its upcoming release. It is anticipated that the company will report an EPS of $5.75, marking a 11.43% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $44.37 billion, showing a 13.55% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $25.25 per share and revenue of $185.92 billion, which would represent changes of +5.83% and +13.02%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Meta Platforms. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.39% higher. At present, Meta Platforms boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Meta Platforms is currently exchanging hands at a Forward P/E ratio of 28.07. This expresses a premium compared to the average Forward P/E of 28 of its industry.
One should further note that META currently holds a PEG ratio of 1.74. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.22.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.