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Why Meta Platforms (META) Dipped More Than Broader Market Today
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In the latest trading session, Meta Platforms (META - Free Report) closed at $721.31, marking a -2.38% move from the previous day. This change lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 0.22%.
The social media company's stock has climbed by 20.44% in the past month, exceeding the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of Meta Platforms in its upcoming earnings disclosure. The company is forecasted to report an EPS of $6.39, showcasing a 11.86% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $63.18 billion, up 23.3% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $31.39 per share and a revenue of $254.04 billion, signifying shifts of +33.63% and +26.41%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Meta Platforms. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.82% lower. At present, Meta Platforms boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Meta Platforms currently has a Forward P/E ratio of 23.54. This indicates a premium in contrast to its industry's Forward P/E of 20.09.
It's also important to note that META currently trades at 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 1.18 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% 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.
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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Why Meta Platforms (META) Dipped More Than Broader Market Today
In the latest trading session, Meta Platforms (META - Free Report) closed at $721.31, marking a -2.38% move from the previous day. This change lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 0.22%.
The social media company's stock has climbed by 20.44% in the past month, exceeding the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of Meta Platforms in its upcoming earnings disclosure. The company is forecasted to report an EPS of $6.39, showcasing a 11.86% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $63.18 billion, up 23.3% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $31.39 per share and a revenue of $254.04 billion, signifying shifts of +33.63% and +26.41%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Meta Platforms. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.82% lower. At present, Meta Platforms boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Meta Platforms currently has a Forward P/E ratio of 23.54. This indicates a premium in contrast to its industry's Forward P/E of 20.09.
It's also important to note that META currently trades at 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 1.18 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.