Facebook (FB) closed at $145.83 in the latest trading session, marking a +1.06% move from the prior day. This change outpaced the S&P 500's 0.14% gain on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.68%.
Heading into today, shares of the social media company had gained 7.54% over the past month, lagging the Computer and Technology sector's gain of 8.09% and the S&P 500's gain of 9.43% in that time.
Wall Street will be looking for positivity from FB as it approaches its nex t earnings report date. This is expected to be January 30, 2019. The company is expected to report EPS of $2.17, down 1.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.37 billion, up 26.22% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for FB. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. FB is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, FB currently has a Forward P/E ratio of 19.57. For comparison, its industry has an average Forward P/E of 28.15, which means FB is trading at a discount to the group.
It is also worth noting that FB currently has a PEG ratio of 0.91. 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 - Services stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.