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Facebook (FB) Gains As Market Dips: What You Should Know

In the latest trading session, Facebook (FB) closed at $133.40, marking a +0.12% move from the previous day. This move outpaced the S&P 500's daily loss of 1.58%. Elsewhere, the Dow lost 1.99%, while the tech-heavy Nasdaq lost 1.63%.

Coming into today, shares of the social media company had lost 1.17% in the past month. In that same time, the Computer and Technology sector lost 2.81%, while the S&P 500 lost 6.62%.

Wall Street will be looking for positivity from FB as it approaches its next earnings report date. This is expected to be January 30, 2019. On that day, FB is projected to report earnings of $2.17 per share, which would represent a year-over-year decline of 1.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.40 billion, up 26.4% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.37 per share and revenue of $55.33 billion. These totals would mark changes of +19.64% and +36.11%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for FB. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. FB is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that FB has a Forward P/E ratio of 18.09 right now. This valuation marks a discount compared to its industry's average Forward P/E of 25.77.

It is also worth noting that FB currently has a PEG ratio of 0.84. 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. FB's industry had an average PEG ratio of 2.01 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 101, putting it in the top 39% 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.

Be sure to follow all of these stock-moving metrics, and many 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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