Why Meta Platforms (META) Outpaced the Stock Market Today

In the latest trading session, Meta Platforms (META) closed at $501.32, marking a +0.22% move from the previous day. This change outpaced the S&P 500's 0.03% gain on the day. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 0.12%.

Heading into today, shares of the social media company had gained 0.65% over the past month, outpacing the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 0.9% in that time.

Market participants will be closely following the financial results of Meta Platforms in its upcoming release. The company plans to announce its earnings on April 24, 2024. The company's earnings per share (EPS) are projected to be $4.31, reflecting a 63.26% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $36.22 billion, indicating a 26.44% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $20.07 per share and revenue of $159.21 billion, which would represent changes of +34.97% and +18.02%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Meta Platforms. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.63% rise in the Zacks Consensus EPS estimate. Meta Platforms presently features a Zacks Rank of #2 (Buy).

Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 24.93. This indicates a discount in contrast to its industry's Forward P/E of 27.33.

Meanwhile, META's PEG ratio is currently 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.79 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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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.

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