Facebook (FB - Free Report) closed the most recent trading day at $178.13, moving +1.89% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 0.01%.
Coming into today, shares of the social media company had lost 3.7% in the past month. In that same time, the Computer and Technology sector lost 1.99%, while the S&P 500 gained 0.34%.
Wall Street will be looking for positivity from FB as it approaches its next earnings report date. In that report, analysts expect FB to post earnings of $1.90 per share. This would mark year-over-year growth of 9.2%. Our most recent consensus estimate is calling for quarterly revenue of $16.45 billion, up 24.3% from the year-ago period.
FB's full-year Zacks Consensus Estimates are calling for earnings of $7.09 per share and revenue of $69.22 billion. These results would represent year-over-year changes of -6.34% and +23.97%, respectively.
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, 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 remained stagnant. FB is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, FB currently has a Forward P/E ratio of 24.67. For comparison, its industry has an average Forward P/E of 31.13, which means FB is trading at a discount to the group.
It is also worth noting that FB currently has a PEG ratio of 1.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FB's industry had an average PEG ratio of 2.9 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 106, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.