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Meta Platforms (META) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Meta Platforms (META - Free Report) closed at $493.76, marking a -0.26% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the social media company had gained 4.75% in the past month. In that same time, the Computer and Technology sector gained 8.04%, while the S&P 500 gained 4.59%.
The upcoming earnings release of Meta Platforms will be of great interest to investors. The company is predicted to post an EPS of $4.66, indicating a 44.27% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $38.15 billion, up 19.22% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.16 per share and a revenue of $158.97 billion, indicating changes of +35.57% and +17.84%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Meta Platforms. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has moved 0.23% higher. Right now, Meta Platforms possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Meta Platforms is currently being traded at a Forward P/E ratio of 24.56. This valuation marks a discount compared to its industry's average Forward P/E of 28.85.
It's also important to note that META currently trades at a PEG ratio of 1.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. META's industry 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. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Meta Platforms (META) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Meta Platforms (META - Free Report) closed at $493.76, marking a -0.26% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the social media company had gained 4.75% in the past month. In that same time, the Computer and Technology sector gained 8.04%, while the S&P 500 gained 4.59%.
The upcoming earnings release of Meta Platforms will be of great interest to investors. The company is predicted to post an EPS of $4.66, indicating a 44.27% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $38.15 billion, up 19.22% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.16 per share and a revenue of $158.97 billion, indicating changes of +35.57% and +17.84%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Meta Platforms. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has moved 0.23% higher. Right now, Meta Platforms possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Meta Platforms is currently being traded at a Forward P/E ratio of 24.56. This valuation marks a discount compared to its industry's average Forward P/E of 28.85.
It's also important to note that META currently trades at a PEG ratio of 1.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. META's industry 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. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.