In the latest close session, Meta Platforms (META) was down 1.93% at $682.35. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.51%.
The social media company's shares have seen an increase of 9.3% over the last month, surpassing the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45%.
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 $5.75, marking a 11.43% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $44.37 billion, indicating a 13.55% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $25.25 per share and a revenue of $185.98 billion, signifying shifts of +5.83% and +13.06%, respectively, from the last year.
Investors should also note any recent changes 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.26% increase. Meta Platforms is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Meta Platforms is holding a Forward P/E ratio of 27.56. This represents a discount compared to its industry average Forward P/E of 27.94.
Also, we should mention that META has a PEG ratio of 1.71. 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 - Software stocks are, on average, holding a PEG ratio of 2.11 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 22% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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