Facebook (FB - Free Report) closed the most recent trading day at $134.52, moving +0.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.38%.
Prior to today's trading, shares of the social media company had lost 1.89% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 7.55% in that time.
FB will be looking to display strength as it nears its next earnings release, which is expected to be January 30, 2019. The company is expected to report EPS of $2.17, down 1.36% from the prior-year quarter. 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 $7.37 per share and revenue of $55.33 billion, which would represent changes of +19.64% and +36.11%, respectively, from the prior year.
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.
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 has moved 0.09% higher. FB is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, FB is holding a Forward P/E ratio of 18.22. For comparison, its industry has an average Forward P/E of 25.9, which means FB is trading at a discount to the group.
Meanwhile, FB's PEG ratio is currently 0.85. 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 1.81 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 38% 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.
To follow FB in the coming trading sessions, be sure to utilize Zacks.com.