Facebook (FB) closed at $179.69 in the latest trading session, marking a +0.33% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Coming into today, shares of the social media company had gained 5.25% in the past month. In that same time, the Computer and Technology sector gained 5.14%, while the S&P 500 gained 4.3%.
Investors will be hoping for strength from FB as it approaches its next earnings release, which is expected to be April 24, 2019. In that report, analysts expect FB to post earnings of $1.65 per share. This would mark a year-over-year decline of 2.37%. Our most recent consensus estimate is calling for quarterly revenue of $14.96 billion, up 24.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.54 per share and revenue of $68.87 billion, which would represent changes of -0.4% and +23.34%, respectively, from the prior year.
Any recent changes to analyst estimates for FB should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.04% lower within the past month. FB is currently a Zacks Rank #3 (Hold).
Digging into valuation, FB currently has a Forward P/E ratio of 23.74. For comparison, its industry has an average Forward P/E of 25.81, which means FB is trading at a discount to the group.
It is also worth noting that FB currently has a PEG ratio of 1.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 3.34 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.