Yahoo Finance Meta Platforms (META) Stock Sinks As Market Gains: What You Should Know
In the latest market close, Meta Platforms (META) reached $529.32, with a -1.96% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow experienced a drop of 0.08%, and the technology-dominated Nasdaq saw an increase of 0.28%.
The social media company's stock has climbed by 9.52% in the past month, exceeding the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08%.
The upcoming earnings release of Meta Platforms will be of great interest to investors. The company's earnings report is expected on July 31, 2024. The company is forecasted to report an EPS of $4.66, showcasing a 44.27% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $38.15 billion, reflecting a 19.22% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $20.15 per share and a revenue of $158.97 billion, signifying shifts of +35.51% and +17.84%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Meta Platforms. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.05% fall in the Zacks Consensus EPS estimate. As of now, Meta Platforms holds a Zacks Rank of #3 (Hold).
With respect to valuation, Meta Platforms is currently being traded at a Forward P/E ratio of 26.79. Its industry sports an average Forward P/E of 29.89, so one might conclude that Meta Platforms is trading at a discount comparatively.
Investors should also note that META has a PEG ratio of 1.4 right now. 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 average PEG ratio for the Internet - Software industry stood at 1.74 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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
