U.S. markets closed
  • S&P 500

    4,247.44
    +8.26 (+0.19%)
     
  • Dow 30

    34,479.60
    +13.40 (+0.04%)
     
  • Nasdaq

    14,069.42
    +49.12 (+0.35%)
     
  • Russell 2000

    2,335.81
    +24.40 (+1.06%)
     
  • Crude Oil

    70.91
    +0.62 (+0.88%)
     
  • Gold

    1,879.60
    -16.80 (-0.89%)
     
  • Silver

    28.15
    +0.11 (+0.41%)
     
  • EUR/USD

    1.2107
    -0.0071 (-0.58%)
     
  • 10-Yr Bond

    1.4620
    +0.0030 (+0.21%)
     
  • GBP/USD

    1.4117
    -0.0060 (-0.42%)
     
  • USD/JPY

    109.6350
    +0.2870 (+0.26%)
     
  • BTC-USD

    37,163.44
    +1,607.14 (+4.52%)
     
  • CMC Crypto 200

    924.19
    -17.62 (-1.87%)
     
  • FTSE 100

    7,134.06
    +45.88 (+0.65%)
     
  • Nikkei 225

    28,948.73
    -9.87 (-0.03%)
     

Facebook (FB) Outpaces Stock Market Gains: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

In the latest trading session, Facebook (FB) closed at $330.35, marking a +1.32% move from the previous day. This move outpaced the S&P 500's daily gain of 0.88%.

Coming into today, shares of the social media company had gained 1.88% in the past month. In that same time, the Computer and Technology sector lost 0.94%, while the S&P 500 gained 0.15%.

Investors will be hoping for strength from FB as it approaches its next earnings release. In that report, analysts expect FB to post earnings of $3.03 per share. This would mark year-over-year growth of 68.33%. Meanwhile, our latest consensus estimate is calling for revenue of $27.72 billion, up 48.34% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.18 per share and revenue of $115.8 billion. These totals would mark changes of +30.62% and +34.7%, respectively, from last year.

Any recent changes to analyst estimates for FB should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.99% higher. FB is currently a Zacks Rank #2 (Buy).

Investors should also note FB's current valuation metrics, including its Forward P/E ratio of 24.73. This valuation marks a discount compared to its industry's average Forward P/E of 26.88.

Also, we should mention that FB has a PEG ratio of 1.23. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 30% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.