Yahoo Finance Why the Market Dipped But Meta Platforms (META) Gained Today
In the latest market close, Meta Platforms (META) reached $498.91, with a +0.83% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.31%. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq depreciated by 1.09%.
Heading into today, shares of the social media company had gained 3.46% over the past month, lagging the Computer and Technology sector's gain of 6.41% and outpacing the S&P 500's gain of 2.73% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Meta Platforms in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.66, reflecting a 44.27% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $38.15 billion, indicating a 19.22% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.16 per share and revenue of $158.97 billion, indicating changes of +35.57% and +17.84%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Meta Platforms. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been a 0.17% fall in the Zacks Consensus EPS estimate. Right now, Meta Platforms possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Meta Platforms is at present trading with a Forward P/E ratio of 24.54. This signifies a discount in comparison to the average Forward P/E of 30.05 for its industry.
We can additionally observe that META currently boasts a PEG ratio of 1.28. 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 was holding an average PEG ratio of 1.72 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Meta Platforms, Inc. (META) : Free Stock Analysis Report
