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Meta Platforms (META) Outpaces Stock Market Gains: What You Should Know

·3 min read

Meta Platforms (META) closed at $148.02 in the latest trading session, marking a +1.18% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.2%.

Prior to today's trading, shares of the social media company had lost 12.9% over the past month. This has was narrower than the Computer and Technology sector's loss of 14.62% and lagged the S&P 500's loss of 9.94% in that time.

Wall Street will be looking for positivity from Meta Platforms as it approaches its next earnings report date. The company is expected to report EPS of $1.84, down 42.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.51 billion, down 5.19% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.55 per share and revenue of $116.35 billion. These totals would mark changes of -30.65% and -1.34%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Meta Platforms. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 3.37% higher. Meta Platforms is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 15.31. This valuation marks a discount compared to its industry's average Forward P/E of 43.29.

Investors should also note that META has a PEG ratio of 1.94 right now. 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. The Internet - Software was holding an average PEG ratio of 2.55 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 142, which puts it in the bottom 44% 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.

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

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Meta Platforms, Inc. (META) : Free Stock Analysis Report
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