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Meta Platforms (META) Declines More Than Market: Some Information for Investors
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In the latest close session, Meta Platforms (META - Free Report) was down 5.51% at $593.00. The stock's change was less than the S&P 500's daily loss of 2.65%. On the other hand, the Dow registered a loss of 1.35%, and the technology-centric Nasdaq decreased by 4.18%.
The social media company's shares have seen an increase of 1.74% over the last month, not keeping up with the Computer and Technology sector's gain of 10.37% and the S&P 500's gain of 5.47%.
Market participants will be closely following the financial results of Meta Platforms in its upcoming release. The company's earnings per share (EPS) are projected to be $7.11, reflecting a 0.42% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.13 billion, up 26.56% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $33 per share and revenue of $253.28 billion, which would represent changes of +40.49% and +26.03%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates 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 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. The Zacks Consensus EPS estimate has moved 0.6% lower within the past month. Meta Platforms is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Meta Platforms is presently being traded at a Forward P/E ratio of 19.01. This expresses a premium compared to the average Forward P/E of 18.84 of its industry.
It is also worth noting that META currently has a PEG ratio of 0.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.06 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 34% 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.
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Meta Platforms (META) Declines More Than Market: Some Information for Investors
In the latest close session, Meta Platforms (META - Free Report) was down 5.51% at $593.00. The stock's change was less than the S&P 500's daily loss of 2.65%. On the other hand, the Dow registered a loss of 1.35%, and the technology-centric Nasdaq decreased by 4.18%.
The social media company's shares have seen an increase of 1.74% over the last month, not keeping up with the Computer and Technology sector's gain of 10.37% and the S&P 500's gain of 5.47%.
Market participants will be closely following the financial results of Meta Platforms in its upcoming release. The company's earnings per share (EPS) are projected to be $7.11, reflecting a 0.42% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.13 billion, up 26.56% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $33 per share and revenue of $253.28 billion, which would represent changes of +40.49% and +26.03%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates 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 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. The Zacks Consensus EPS estimate has moved 0.6% lower within the past month. Meta Platforms is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Meta Platforms is presently being traded at a Forward P/E ratio of 19.01. This expresses a premium compared to the average Forward P/E of 18.84 of its industry.
It is also worth noting that META currently has a PEG ratio of 0.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.06 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 34% 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.