Meta Platforms (META) closed at $666.01 in the latest trading session, marking a +1.11% move from the prior day. This change outpaced the S&P 500's 0.14% loss on the day. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.24%.
The social media company's shares have seen an increase of 2.78% over the last month, surpassing the Computer and Technology sector's gain of 0.2% and the S&P 500's gain of 0.94%.
Investors will be eagerly watching for the performance of Meta Platforms in its upcoming earnings disclosure. The company is predicted to post an EPS of $8.16, indicating a 1.75% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $58.4 billion, showing a 20.69% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $23.04 per share and revenue of $199.46 billion. These totals would mark changes of -3.44% and +21.25%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Meta Platforms. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 1.71% upward. Meta Platforms currently has a Zacks Rank of #3 (Hold).
Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 28.59. This denotes a discount relative to the industry average Forward P/E of 28.78.
It's also important to note that META currently trades at a PEG ratio of 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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