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Meta Platforms (META) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, Meta Platforms (META - Free Report) closed at $734.38, marking a -1.21% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 0.31%.
The social media company's shares have seen an increase of 0.64% over the last month, not keeping up with the Computer and Technology sector's gain of 7.63% and the S&P 500's gain of 3.15%.
The upcoming earnings release of Meta Platforms will be of great interest to investors. The company's earnings per share (EPS) are projected to be $6.74, reflecting a 11.77% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $49.39 billion, indicating a 21.68% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $28.14 per share and revenue of $195.92 billion, indicating changes of +17.94% and +19.1%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Meta Platforms. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Meta Platforms is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 26.42. Its industry sports an average Forward P/E of 31, so one might conclude that Meta Platforms is trading at a discount comparatively.
Also, we should mention that META has a PEG ratio of 1.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. META's industry had an average PEG ratio of 2.27 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Meta Platforms (META) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, Meta Platforms (META - Free Report) closed at $734.38, marking a -1.21% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 0.31%.
The social media company's shares have seen an increase of 0.64% over the last month, not keeping up with the Computer and Technology sector's gain of 7.63% and the S&P 500's gain of 3.15%.
The upcoming earnings release of Meta Platforms will be of great interest to investors. The company's earnings per share (EPS) are projected to be $6.74, reflecting a 11.77% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $49.39 billion, indicating a 21.68% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $28.14 per share and revenue of $195.92 billion, indicating changes of +17.94% and +19.1%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Meta Platforms. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Meta Platforms is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 26.42. Its industry sports an average Forward P/E of 31, so one might conclude that Meta Platforms is trading at a discount comparatively.
Also, we should mention that META has a PEG ratio of 1.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. META's industry had an average PEG ratio of 2.27 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.