The latest trading session saw Meta Platforms (META) ending at $590.42, denoting a +0.08% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.87%.
The the stock of social media company has risen by 12.45% in the past month, leading the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87%.
Investors will be eagerly watching for the performance of Meta Platforms in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 30, 2024. The company is forecasted to report an EPS of $5.15, showcasing a 17.31% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $40.1 billion, indicating a 17.42% upward movement from the same quarter last year.
META's full-year Zacks Consensus Estimates are calling for earnings of $21.38 per share and revenue of $161.69 billion. These results would represent year-over-year changes of +43.78% and +19.86%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Meta Platforms. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. At present, Meta Platforms boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Meta Platforms is currently exchanging hands at a Forward P/E ratio of 27.59. This represents a discount compared to its industry's average Forward P/E of 31.76.
Investors should also note that META has a PEG ratio of 1.44 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 2.03 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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