Facebook (FB - Free Report) closed the most recent trading day at $138.05, moving +0.07% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 1.26%.
Heading into today, shares of the social media company had lost 1.2% over the past month, outpacing the Computer and Technology sector's loss of 4.86% and the S&P 500's loss of 6.13% 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. In that report, analysts expect FB to post earnings of $2.17 per share. This would mark a year-over-year decline of 1.36%. Our most recent consensus estimate is calling for quarterly revenue of $16.40 billion, up 26.4% from the year-ago period.
It is also important to note the recent changes to analyst estimates for FB. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% higher. FB is currently a Zacks Rank #2 (Buy).
Looking at its valuation, FB is holding a Forward P/E ratio of 18.76. This represents a discount compared to its industry's average Forward P/E of 25.71.
Investors should also note that FB has a PEG ratio of 0.87 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. FB's industry had an average PEG ratio of 1.91 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 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.