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Here's Why Meta Platforms (META) Fell More Than Broader Market
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Meta Platforms (META - Free Report) closed the most recent trading day at $644.38, moving -1.42% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.59%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq lost 0.65%.
The stock of social media company has risen by 12.93% in the past month, leading the Computer and Technology sector's loss of 0.02% and the S&P 500's loss of 1.37%.
The investment community will be closely monitoring the performance of Meta Platforms in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $6.33, reflecting a 12.69% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $63.17 billion, indicating a 23.28% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $31.52 per share and a revenue of $253.93 billion, signifying shifts of +34.18% and +26.36%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Meta Platforms. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.17% lower. As of now, Meta Platforms holds a Zacks Rank of #3 (Hold).
Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 20.74. This denotes a premium relative to the industry average Forward P/E of 19.88.
One should further note that META currently holds a PEG ratio of 1.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Here's Why Meta Platforms (META) Fell More Than Broader Market
Meta Platforms (META - Free Report) closed the most recent trading day at $644.38, moving -1.42% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.59%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq lost 0.65%.
The stock of social media company has risen by 12.93% in the past month, leading the Computer and Technology sector's loss of 0.02% and the S&P 500's loss of 1.37%.
The investment community will be closely monitoring the performance of Meta Platforms in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $6.33, reflecting a 12.69% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $63.17 billion, indicating a 23.28% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $31.52 per share and a revenue of $253.93 billion, signifying shifts of +34.18% and +26.36%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Meta Platforms. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.17% lower. As of now, Meta Platforms holds a Zacks Rank of #3 (Hold).
Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 20.74. This denotes a premium relative to the industry average Forward P/E of 19.88.
One should further note that META currently holds a PEG ratio of 1.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.