Meta Platforms Post-Session Update: Earnings Report Insights and Projections

The latest trading session concluded with Meta Platforms (META) at $668.20, marking a +1.51% increase compared to the previous day’s close. However, the company’s performance lagged behind the S&P 500, which gained 1.59%. During the same session, the Dow climbed 1.39%, while the tech-driven Nasdaq saw a rise of 1.63%.

Over the past month, Meta’s shares have decreased by 4.19%. This decline surpasses the Computer and Technology sector’s loss of 3.43% and the S&P 500’s decrease of 2.42%.

Upcoming Financial Results and Analyst Expectations

Market participants are keenly awaiting Meta Platforms’ upcoming financial results. Analysts project earnings of $5.60 per share, reflecting a year-over-year growth of 18.9%. Additionally, the consensus estimates anticipate quarterly revenue of $41.43 billion, an increase of 13.64% compared to the same period last year.

The full-year Zacks Consensus Estimates forecast Meta to achieve earnings of $26.70 per share and total revenue of $188.8 billion, which would represent year-over-year growth rates of +11.9% and +14.77%, respectively.

Monitoring Analyst Estimates and Market Performance

Investors should focus on any recent revisions to analyst forecasts for Meta Platforms. These updates typically reflect shifts in the near-term business outlook. Positive changes in estimates usually indicate a favorable analyst sentiment regarding the company’s operational health and profitability.

Research shows that estimate revisions correlate closely with near-term share price momentum. To capitalize on this insight, the Zacks Rank has been developed as a unique model that integrates these estimate modifications into its rating system.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven track record. Historically, stocks rated #1 have delivered an average annual return of +25% since 1988. Recently, there has been a 4.96% increase in the Zacks Consensus EPS estimate. Currently, Meta Platforms carries a Zacks Rank of #3 (Hold).

Valuation Metrics and Industry Context

Regarding valuation, Meta Platforms trades with a Forward P/E ratio of 24.66, which presents a discount relative to its industry’s Forward P/E of 27.99. Additionally, META has a PEG ratio of 1.34, indicating its expected earnings growth in relation to its price-to-earnings valuation. Comparatively, the Internet – Software industry averaged a PEG ratio of 2.11 at the close of trading yesterday.

This industry is part of the broader Computer and Technology sector and currently boasts a Zacks Industry Rank of 82, positioning it within the top 33% of more than 250 industries.

The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of their component stocks. Historical data suggests that the top 50% rated industries tend to outperform their lower-ranked counterparts by a factor of two to one.

To track these and other important stock metrics, visit Zacks.com ahead of the upcoming trading sessions.

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

This article was originally published on Zacks Investment Research (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.