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Meta Platforms (META) Registers a Bigger Fall Than the Market: Important Facts to Note
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Meta Platforms (META - Free Report) ended the recent trading session at $725.18, demonstrating a -1.84% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.25%. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq increased by 0.24%.
The stock of social media company has risen by 27.7% in the past month, leading the Computer and Technology sector's gain of 4% and the S&P 500's loss of 0.42%.
Investors will be eagerly watching for the performance of Meta Platforms in its upcoming earnings disclosure. The company is expected to report EPS of $6.39, down 11.86% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $63.18 billion, indicating a 23.3% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $31.39 per share and a revenue of $254.04 billion, representing changes of +33.63% and +26.41%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Meta Platforms. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.82% downward. Meta Platforms is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Meta Platforms currently has a Forward P/E ratio of 23.54. This signifies a premium in comparison to the average Forward P/E of 18.78 for its industry.
One should further note that META currently holds a PEG ratio of 1.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.15 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Meta Platforms (META) Registers a Bigger Fall Than the Market: Important Facts to Note
Meta Platforms (META - Free Report) ended the recent trading session at $725.18, demonstrating a -1.84% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.25%. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq increased by 0.24%.
The stock of social media company has risen by 27.7% in the past month, leading the Computer and Technology sector's gain of 4% and the S&P 500's loss of 0.42%.
Investors will be eagerly watching for the performance of Meta Platforms in its upcoming earnings disclosure. The company is expected to report EPS of $6.39, down 11.86% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $63.18 billion, indicating a 23.3% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $31.39 per share and a revenue of $254.04 billion, representing changes of +33.63% and +26.41%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Meta Platforms. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.82% downward. Meta Platforms is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Meta Platforms currently has a Forward P/E ratio of 23.54. This signifies a premium in comparison to the average Forward P/E of 18.78 for its industry.
One should further note that META currently holds a PEG ratio of 1.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.15 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.