Facebook (FB - Free Report) closed at $135 in the latest trading session, marking a -1.01% move from the prior day. This move lagged the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.01%.
Prior to today's trading, shares of the social media company had lost 4.02% over the past month. This has lagged the Computer and Technology sector's loss of 1.56% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from FB as it approaches its next earnings release, which is expected to be January 30, 2019. On that day, FB is projected to report earnings of $2.16 per share, which would represent a year-over-year decline of 1.82%. Meanwhile, our latest consensus estimate is calling for revenue of $16.40 billion, up 26.4% from the prior-year quarter.
FB's full-year Zacks Consensus Estimates are calling for earnings of $7.36 per share and revenue of $55.33 billion. These results would represent year-over-year changes of +19.48% and +36.11%, respectively.
Any recent changes to analyst estimates for FB should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 4.3% higher. FB currently has a Zacks Rank of #3 (Hold).
Investors should also note FB's current valuation metrics, including its Forward P/E ratio of 18.53. For comparison, its industry has an average Forward P/E of 27.15, which means FB is trading at a discount to the group.
Also, we should mention that FB has a PEG ratio of 0.83. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.17 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 31% 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.