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Meta Platforms (META) Stock Sinks As Market Gains: What You Should Know
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Meta Platforms (META - Free Report) closed at $214.75 in the latest trading session, marking a -0.62% move from the prior day. This change lagged the S&P 500's 0.1% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq lost 2.19%.
Prior to today's trading, shares of the social media company had gained 20.38% over the past month. This has outpaced the Computer and Technology sector's gain of 7.7% and the S&P 500's gain of 3.13% in that time.
Meta Platforms will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2023. On that day, Meta Platforms is projected to report earnings of $1.97 per share, which would represent a year-over-year decline of 27.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.48 billion, down 1.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.23 per share and revenue of $121.95 billion. These totals would mark changes of +4.07% and +4.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Meta Platforms. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 7.44% higher. Meta Platforms is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Meta Platforms has a Forward P/E ratio of 21.13 right now. This represents a discount compared to its industry's average Forward P/E of 42.93.
Investors should also note that META has a PEG ratio of 1.99 right now. 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 - Software stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Meta Platforms (META) Stock Sinks As Market Gains: What You Should Know
Meta Platforms (META - Free Report) closed at $214.75 in the latest trading session, marking a -0.62% move from the prior day. This change lagged the S&P 500's 0.1% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq lost 2.19%.
Prior to today's trading, shares of the social media company had gained 20.38% over the past month. This has outpaced the Computer and Technology sector's gain of 7.7% and the S&P 500's gain of 3.13% in that time.
Meta Platforms will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2023. On that day, Meta Platforms is projected to report earnings of $1.97 per share, which would represent a year-over-year decline of 27.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.48 billion, down 1.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.23 per share and revenue of $121.95 billion. These totals would mark changes of +4.07% and +4.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Meta Platforms. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 7.44% higher. Meta Platforms is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Meta Platforms has a Forward P/E ratio of 21.13 right now. This represents a discount compared to its industry's average Forward P/E of 42.93.
Investors should also note that META has a PEG ratio of 1.99 right now. 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 - Software stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.