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Meta Platforms (META) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Meta Platforms (META - Free Report) closed at $302.55, marking a +0.75% move from the previous day. This move outpaced the S&P 500's daily gain of 0.07%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.01%.
Heading into today, shares of the social media company had gained 6.02% over the past month, outpacing the Computer and Technology sector's gain of 1.5% and the S&P 500's gain of 0.38% in that time.
Investors will be hoping for strength from Meta Platforms as it approaches its next earnings release. On that day, Meta Platforms is projected to report earnings of $3.53 per share, which would represent year-over-year growth of 115.24%. Meanwhile, our latest consensus estimate is calling for revenue of $33.41 billion, up 20.55% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.11 per share and revenue of $132.74 billion. These totals would mark changes of +33.37% and +13.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Meta Platforms. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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 0.14% higher within the past month. Meta Platforms is currently a Zacks Rank #3 (Hold).
In terms of valuation, Meta Platforms is currently trading at a Forward P/E ratio of 22.9. Its industry sports an average Forward P/E of 36.65, so we one might conclude that Meta Platforms is trading at a discount comparatively.
Meanwhile, META's PEG ratio is currently 0.99. 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 1.6 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 94, which puts it in the top 38% 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.
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Meta Platforms (META) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Meta Platforms (META - Free Report) closed at $302.55, marking a +0.75% move from the previous day. This move outpaced the S&P 500's daily gain of 0.07%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.01%.
Heading into today, shares of the social media company had gained 6.02% over the past month, outpacing the Computer and Technology sector's gain of 1.5% and the S&P 500's gain of 0.38% in that time.
Investors will be hoping for strength from Meta Platforms as it approaches its next earnings release. On that day, Meta Platforms is projected to report earnings of $3.53 per share, which would represent year-over-year growth of 115.24%. Meanwhile, our latest consensus estimate is calling for revenue of $33.41 billion, up 20.55% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.11 per share and revenue of $132.74 billion. These totals would mark changes of +33.37% and +13.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Meta Platforms. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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 0.14% higher within the past month. Meta Platforms is currently a Zacks Rank #3 (Hold).
In terms of valuation, Meta Platforms is currently trading at a Forward P/E ratio of 22.9. Its industry sports an average Forward P/E of 36.65, so we one might conclude that Meta Platforms is trading at a discount comparatively.
Meanwhile, META's PEG ratio is currently 0.99. 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 1.6 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 94, which puts it in the top 38% 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.