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Meta Platforms (META) Laps the Stock Market: Here's Why

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Meta Platforms (META - Free Report) closed at $658.79 in the latest trading session, marking a +1.29% move from the prior day. This move outpaced the S&P 500's daily gain of 0.64%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.

Heading into today, shares of the social media company had lost 3.42% over the past month, lagging the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.

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 $8.16, reflecting a 1.75% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $58.4 billion, showing a 20.69% escalation compared to the year-ago quarter.

META's full-year Zacks Consensus Estimates are calling for earnings of $23.04 per share and revenue of $199.46 billion. These results would represent year-over-year changes of -3.44% and 0%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Meta Platforms. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.08% higher. Meta Platforms is currently a Zacks Rank #3 (Hold).

Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 21.56. This indicates a discount in contrast to its industry's Forward P/E of 24.2.

Investors should also note that META has a PEG ratio of 1.31 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.54 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 Zacks.com.


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