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Meta Platforms (META) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Meta Platforms (META - Free Report) closed at $218.89, marking a -1.17% move from the previous day. This move lagged the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.92%.
Coming into today, shares of the social media company had gained 13.23% in the past month. In that same time, the Computer and Technology sector gained 7.45%, while the S&P 500 gained 5.67%.
Wall Street will be looking for positivity from Meta Platforms as it approaches its next earnings report date. This 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 $27.49 billion, down 1.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.26 per share and revenue of $122.02 billion. These totals would mark changes of +4.37% and +4.64%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Meta Platforms. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. The Zacks Consensus EPS estimate has moved 2.89% higher within the past month. Meta Platforms is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Meta Platforms currently has a Forward P/E ratio of 21.59. For comparison, its industry has an average Forward P/E of 41.37, which means Meta Platforms is trading at a discount to the group.
Also, we should mention that META has a PEG ratio of 2.03. 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. The Internet - Software industry currently had an average PEG ratio of 1.72 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Meta Platforms (META) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Meta Platforms (META - Free Report) closed at $218.89, marking a -1.17% move from the previous day. This move lagged the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.92%.
Coming into today, shares of the social media company had gained 13.23% in the past month. In that same time, the Computer and Technology sector gained 7.45%, while the S&P 500 gained 5.67%.
Wall Street will be looking for positivity from Meta Platforms as it approaches its next earnings report date. This 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 $27.49 billion, down 1.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.26 per share and revenue of $122.02 billion. These totals would mark changes of +4.37% and +4.64%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Meta Platforms. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. The Zacks Consensus EPS estimate has moved 2.89% higher within the past month. Meta Platforms is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Meta Platforms currently has a Forward P/E ratio of 21.59. For comparison, its industry has an average Forward P/E of 41.37, which means Meta Platforms is trading at a discount to the group.
Also, we should mention that META has a PEG ratio of 2.03. 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. The Internet - Software industry currently had an average PEG ratio of 1.72 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.