Meta Platforms (META) closed at $349.28 in the latest trading session, marking a -0.31% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 1.47%. Elsewhere, the Dow saw a downswing of 1.27%, while the tech-heavy Nasdaq depreciated by 1.5%.
The the stock of social media company has risen by 3.97% in the past month, lagging the Computer and Technology sector's gain of 4.98% and the S&P 500's gain of 5.77%.
Investors will be eagerly watching for the performance of Meta Platforms in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.77, marking a 59% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $38.66 billion, up 20.2% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $14.32 per share and a revenue of $133.4 billion, demonstrating changes of +45.68% and +14.4%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Meta Platforms. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.39% higher within the past month. Meta Platforms is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Meta Platforms is holding a Forward P/E ratio of 24.47. This indicates a discount in contrast to its industry's Forward P/E of 39.68.
Investors should also note that META has a PEG ratio of 1.15 right now. 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. The Internet - Software industry currently had an average PEG ratio of 1.81 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 29, positioning it in the top 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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