Facebook (FB - Free Report) closed at $161.36 in the latest trading session, marking a -0.42% move from the prior day. This move lagged the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.75%.
Coming into today, shares of the social media company had lost 9.76% in the past month. In that same time, the Computer and Technology sector gained 0.86%, while the S&P 500 gained 2.16%.
Wall Street will be looking for positivity from FB as it approaches its next earnings report date. This is expected to be November 7, 2018. In that report, analysts expect FB to post earnings of $1.48 per share. This would mark a year-over-year decline of 6.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.83 billion, up 33.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.08 per share and revenue of $55.46 billion. These totals would mark changes of +14.94% and +36.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for FB. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. FB is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, FB currently has a Forward P/E ratio of 22.89. Its industry sports an average Forward P/E of 32.9, so we one might conclude that FB is trading at a discount comparatively.
Investors should also note that FB has a PEG ratio of 1.04 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.45 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.