Meta Platforms (META) closed at $765.70 in the latest trading session, marking a +1.78% move from the prior day. This change outpaced the S&P 500's 0.27% gain on the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.37%.
Shares of the social media company witnessed a loss of 1.77% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.4%, and the S&P 500's gain of 1.85%.
Analysts and investors alike will be keeping a close eye on the performance of Meta Platforms in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $6.74, marking a 11.77% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $49.39 billion, indicating a 21.68% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $28.13 per share and revenue of $195.91 billion, which would represent changes of +17.9% and +19.1%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Meta Platforms. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.55% upward. Meta Platforms presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Meta Platforms has a Forward P/E ratio of 26.74 right now. This represents a discount compared to its industry average Forward P/E of 31.58.
We can also see that META currently has a PEG ratio of 1.55. 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 average PEG ratio for the Internet - Software industry stood at 2.34 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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.
To follow META in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
