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Meta Platforms (META) Dips More Than Broader Markets: What You Should Know
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Meta Platforms (META - Free Report) closed at $291.99 in the latest trading session, marking a -0.81% move from the prior day. This change lagged the S&P 500's 0.79% loss on the day. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 2.71%.
Prior to today's trading, shares of the social media company had gained 11.67% over the past month. This has outpaced the Computer and Technology sector's gain of 2.73% and the S&P 500's gain of 4.16% in that time.
Meta Platforms will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.82, up 14.63% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.8 billion, up 6.87% from the year-ago period.
META's full-year Zacks Consensus Estimates are calling for earnings of $11.94 per share and revenue of $127.08 billion. These results would represent year-over-year changes of +21.46% and +8.98%, respectively.
It is also important to note the recent changes to analyst estimates for Meta Platforms. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Meta Platforms currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Meta Platforms is currently trading at a Forward P/E ratio of 24.66. 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.
Meanwhile, META's PEG ratio is currently 1.12. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.71 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 73, which puts it in the top 29% 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) Dips More Than Broader Markets: What You Should Know
Meta Platforms (META - Free Report) closed at $291.99 in the latest trading session, marking a -0.81% move from the prior day. This change lagged the S&P 500's 0.79% loss on the day. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 2.71%.
Prior to today's trading, shares of the social media company had gained 11.67% over the past month. This has outpaced the Computer and Technology sector's gain of 2.73% and the S&P 500's gain of 4.16% in that time.
Meta Platforms will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.82, up 14.63% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.8 billion, up 6.87% from the year-ago period.
META's full-year Zacks Consensus Estimates are calling for earnings of $11.94 per share and revenue of $127.08 billion. These results would represent year-over-year changes of +21.46% and +8.98%, respectively.
It is also important to note the recent changes to analyst estimates for Meta Platforms. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Meta Platforms currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Meta Platforms is currently trading at a Forward P/E ratio of 24.66. 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.
Meanwhile, META's PEG ratio is currently 1.12. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.71 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 73, which puts it in the top 29% 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.