Meta Platforms Sees Minor Decline Ahead of Earnings Report
Stock Performance Analysis
The latest trading session concluded with Meta Platforms (META) at $611.30, reflecting a -0.94% change from the previous day’s closing price. In comparison, the S&P 500 experienced a small decline of 0.21% for the day. The Dow Jones Industrial Average slipped by 0.16%, while the tech-focused Nasdaq fell by 0.89%.
Recent Trends and Upcoming Earnings
Leading up to today, shares of Meta Platforms increased by 3.34% over the past month. During the same timeframe, the Computer and Technology sector reported a loss of 2.15%, and the S&P 500 dropped by 1.56%.
Investor Watch: Earnings Forecast
Investors are keenly anticipating Meta Platforms’ upcoming earnings report, scheduled for January 29, 2025. Analysts expect the company to post an earnings per share (EPS) of $6.75, representing a significant 26.64% increase from the same quarter last year. Additionally, revenue is projected to reach $46.98 billion, indicating a 17.11% rise compared to the previous year’s quarter.
Analyst Estimates and Zacks Rank
Investors should stay informed on any recent modifications to analyst estimates for Meta Platforms, as these revisions often reflect prevailing business trends. Positive changes in estimates generally showcase optimism about the company’s performance and profitability.
Our analysis indicates a correlation between estimate revisions and stock prices. The Zacks Rank, which ranges from #1 (Strong Buy) to #5 (Strong Sell), is built on this principle. Historically, stocks rated #1 have yielded an average annual return of +25% since 1988. Over the last month, the Zacks Consensus EPS estimate has adjusted slightly upward by 0.02%. Currently, Meta Platforms holds a Zacks Rank of #3 (Hold).
Valuation Metrics
From a valuation standpoint, Meta Platforms has a Forward P/E ratio of 24.5, indicating a discount compared to the industry’s average of 28.24.
The company’s PEG ratio stands at 1.22, providing insight into projected earnings growth. For context, the Internet – Software industry, which includes Meta, has an average PEG ratio of 2.19.
Industry Position
The Internet – Software industry is a segment of the Computer and Technology sector, currently ranked 33 by Zacks, placing it in the top 14% of over 250 industries. Industries in the upper half of the Zacks Industry Rank tend to outperform those in the lower half by a ratio of 2 to 1.
Stay Updated
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Meta Platforms, Inc. (META): Free Stock Analysis Report
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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.
