Meta Platforms Eyes Earnings Release Amid Steady Stock Growth
Recent Market Trends Highlight Mixed Performance
The latest trading session for Meta Platforms (META) concluded with the stock priced at $590.42, reflecting a minor increase of +0.08% from the previous day’s close. However, this performance fell short compared to the S&P 500, which experienced a daily gain of 0.77%. In contrast, the Dow inched up by 0.47%, and the Nasdaq, which focuses on technology companies, rose by 0.87%.
Gaining Momentum Before Earnings Report
Recently, the social media giant’s stock has surged by 12.45% over the past month, significantly outperforming the Computer and Technology sector, which gained 6.36%, as well as the S&P 500, with its increase of 4.87%.
Investors eagerly await Meta Platforms’ upcoming earnings report, scheduled for October 30, 2024. Analysts predict an earnings per share (EPS) of $5.15, marking an impressive 17.31% increase from the same quarter last year. Furthermore, the revenue forecast stands at $40.1 billion, also reflecting a notable 17.42% rise compared to the previous year.
Zacks Consensus Estimates Indicate Positive Growth
The Zacks Consensus Estimates for the full year project earnings of $21.38 per share alongside revenues reaching $161.69 billion, representing year-over-year changes of +43.78% and +19.86%, respectively.
Paying attention to changes in analyst estimates is crucial for investors. These revisions provide insights into shifting business trends. A rise in positive estimates usually indicates analyst confidence about the company’s ongoing performance and profitability.
Understanding the Zacks Rank for Investment Decisions
Research indicates that alterations in estimates can strongly correlate with stock performance. This insight drives the Zacks Rank, a quantitative model that incorporates these estimates and provides a ratings system ranging from #1 (Strong Buy) to #5 (Strong Sell). Historically, #1 ranked stocks have delivered an impressive average annual return of +25% since 1988. Currently, the Zacks Consensus EPS estimate for Meta has seen a slight increase of 0.08% over the past month, placing it at a Zacks Rank of #2 (Buy).
Current Valuation Metrics Suggest Attractive Opportunities
From a valuation standpoint, Meta Platforms is trading at a Forward P/E ratio of 27.59, offering a discount compared to the industry’s average Forward P/E of 31.76. Additionally, the company has a PEG ratio of 1.44, which accounts for its expected earnings growth rate. This stands in contrast to the average PEG ratio of 2.03 in the Internet – Software sector.
As part of the Computer and Technology sector, the Internet – Software industry currently holds a Zacks Industry Rank of 78, placing it in the top 31% of over 250 industries. This ranking assesses the average Zacks Rank of the individual stocks within these groups, highlighting that the top 50% of rated industries typically outperform the lower half by a factor of two to one.
To stay updated on these stock-moving metrics and others, visit Zacks.com.
Expert Recommendations on Top Stocks
From the current lineup of 220 Zacks Rank #1 Strong Buys, experts have identified 7 elite stocks they believe are poised for early price increases. Their historical performance since 1988 shows these stocks have outperformed the market by more than double, achieving an average annual gain of +23.7%. Make sure to take note of these handpicked stocks.
For further insights, you can download the report titled “5 Stocks Set to Double.” This report is available for free and features 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.
