In the latest trading session, Facebook closed at $185.13, marking a +1.56% move from the previous day. This change outpaced the S&P 500's 0.05% loss on the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.01%.
Prior to today's trading, shares of the social media company had gained 16.69% over the past month. This has lagged the Computer and Technology sector's gain of 21.05% and the S&P 500's gain of 21.82% in that time.
Investors will be hoping for strength from FB as it approaches its next earnings release, which is expected to be April 29, 2020. On that day, FB is projected to report earnings of $1.72 per share, which would represent year-over-year growth of 102.35%. Meanwhile, our latest consensus estimate is calling for revenue of $17.29 billion, up 14.7% from the prior-year quarter.
FB's full-year Zacks Consensus Estimates are calling for earnings of $7.18 per share and revenue of $74.18 billion. These results would represent year-over-year changes of +11.66% and +4.93%, respectively.
Investors might also notice recent changes to analyst estimates for FB. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 20.23% lower. FB is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, FB is currently trading at a Forward P/E ratio of 25.39. This valuation marks a discount compared to its industry's average Forward P/E of 27.
Also, we should mention that FB has a PEG ratio of 1.28. 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. FB's industry had an average PEG ratio of 2.81 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Image: Bigstock
Facebook (FB) Gains As Market Dips: What You Should Know
In the latest trading session, Facebook closed at $185.13, marking a +1.56% move from the previous day. This change outpaced the S&P 500's 0.05% loss on the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.01%.
Prior to today's trading, shares of the social media company had gained 16.69% over the past month. This has lagged the Computer and Technology sector's gain of 21.05% and the S&P 500's gain of 21.82% in that time.
Investors will be hoping for strength from FB as it approaches its next earnings release, which is expected to be April 29, 2020. On that day, FB is projected to report earnings of $1.72 per share, which would represent year-over-year growth of 102.35%. Meanwhile, our latest consensus estimate is calling for revenue of $17.29 billion, up 14.7% from the prior-year quarter.
FB's full-year Zacks Consensus Estimates are calling for earnings of $7.18 per share and revenue of $74.18 billion. These results would represent year-over-year changes of +11.66% and +4.93%, respectively.
Investors might also notice recent changes to analyst estimates for FB. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 20.23% lower. FB is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, FB is currently trading at a Forward P/E ratio of 25.39. This valuation marks a discount compared to its industry's average Forward P/E of 27.
Also, we should mention that FB has a PEG ratio of 1.28. 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. FB's industry had an average PEG ratio of 2.81 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.