Back to top

Image: Bigstock

Meta Platforms (META) Dips More Than Broader Market: What You Should Know

Read MoreHide Full Article

Meta Platforms (META - Free Report) closed the most recent trading day at $710.39, moving -1.46% from the previous trading session. This change lagged the S&P 500's 0.4% loss on the day. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq appreciated by 0.18%.

The social media company's stock has climbed by 2.68% in the past month, falling short of the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 4.97%.

Market participants will be closely following the financial results of Meta Platforms in its upcoming release. The company plans to announce its earnings on July 30, 2025. The company is expected to report EPS of $5.76, up 11.63% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $44.58 billion, up 14.1% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $25.41 per share and revenue of $186.62 billion. These totals would mark changes of +6.5% and +13.45%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Meta Platforms. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.04% upward. As of now, Meta Platforms holds a Zacks Rank of #3 (Hold).

With respect to valuation, Meta Platforms is currently being traded at a Forward P/E ratio of 28.37. Its industry sports an average Forward P/E of 28.28, so one might conclude that Meta Platforms is trading at a premium comparatively.

Meanwhile, META's PEG ratio is currently 1.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 2.18 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% 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:


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

Published in