Facebook (FB - Free Report) closed the most recent trading day at $162.44, moving -1.45% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.73%, while the tech-heavy Nasdaq lost 0.11%.
Prior to today's trading, shares of the social media company had lost 7.42% over the past month. This has lagged the Computer and Technology sector's loss of 0.17% and the S&P 500's gain of 0.73% in that time.
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. The company is expected to report EPS of $1.48, down 6.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.83 billion, up 33.94% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.08 per share and revenue of $55.46 billion, which would represent changes of +14.94% and +36.41%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for FB. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FB is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, FB currently has a Forward P/E ratio of 23.24. For comparison, its industry has an average Forward P/E of 33.89, which means FB is trading at a discount to the group.
It is also worth noting that FB currently has a PEG ratio of 1.05. 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 was holding an average PEG ratio of 2.55 at yesterday's closing price.
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 includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.