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Facebook (FB) Stock Sinks As Market Gains: What You Should Know

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Facebook (FB - Free Report) closed the most recent trading day at $148.68, moving -1.11% from the previous trading session. This change lagged the S&P 500's 0.56% gain on the day. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq lost 0.38%.

Coming into today, shares of the social media company had lost 5.35% in the past month. In that same time, the Computer and Technology sector lost 8.65%, while the S&P 500 lost 6.76%.

Investors will be hoping for strength from FB as it approaches its next earnings release, which is expected to be January 30, 2019. In that report, analysts expect FB to post earnings of $2.19 per share. This would mark a year-over-year decline of 0.45%. Meanwhile, our latest consensus estimate is calling for revenue of $16.40 billion, up 26.4% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.30 per share and revenue of $55.33 billion, which would represent changes of +18.51% and +36.11%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for FB. 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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.18% higher. FB currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, FB is holding a Forward P/E ratio of 20.59. This valuation marks a discount compared to its industry's average Forward P/E of 35.07.

Also, we should mention that FB has a PEG ratio of 0.92. 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. FB's industry had an average PEG ratio of 2.07 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 87, which puts it in the top 34% 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.

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