Meta Platforms Faces Market Challenges Ahead of Earnings Report
In the latest trading session, Meta Platforms (META) closed at $575.16, reflecting a slight decrease of -0.23% from the previous day. This performance fell short compared to the S&P 500’s daily loss of 0.18%. In contrast, the Dow Jones Industrial Average declined by 0.8%, while the tech-heavy Nasdaq managed a slight gain of 0.27%.
Over the past month, shares of Meta Platforms have increased by 2.69%. However, this growth lags behind the Computer and Technology sector’s gain of 6.6% and the S&P 500’s rise of 4.46%.
Investors are eagerly awaiting Meta Platforms’ financial results, set to be announced on October 30, 2024. Analysts anticipate an earnings per share (EPS) of $5.17, which would represent a 17.77% increase from the same quarter last year. Revenue predictions also look positive, with a consensus estimate of $40.16 billion, indicating a 17.6% increase year-over-year.
For the full fiscal year, the Zacks Consensus Estimates project earnings of $21.43 per share and total revenue of $161.84 billion, reflecting increases of 44.12% and 19.97%, respectively, compared to the previous year.
Investors should also keep an eye on any modifications made to analyst estimates for **Meta Platforms**. Such revisions often indicate the latest business trends, and positive changes are typically seen as encouraging signs for the company’s future performance.
Research shows that these estimate revisions correlate with short-term stock price movements. To harness this trend, the Zacks Rank system evaluates these adjustments and provides a rating model. It ranges from #1 (Strong Buy) to #5 (Strong Sell). Stocks rated #1 have delivered an average annual return of +25% since 1988. Over the last month, the Zacks Consensus EPS estimate for Meta Platforms has increased by 0.31%, earning the company a Zacks Rank of #2 (Buy).
Meta Platforms is currently valued at a Forward P/E ratio of 26.9. In comparison, its industry has an average Forward P/E of 32.33, indicating that Meta is trading at a discount relative to its peers.
Additionally, META has a PEG ratio of 1.4, which, like the P/E ratio, considers the company’s anticipated earnings growth rate. The Internet – Software sector holds an average PEG ratio of 2.19, further demonstrating Meta’s favorable value metrics.
The Internet – Software industry falls under the broader Computer and Technology sector, which has a Zacks Industry Rank of 64, placing it in the top 26% of all industries assessed by Zacks.
The Zacks Industry Rank orders sectors based on the average Zacks Rank of the companies, providing insights into performance potential. Historically, top-rated industries outperform their lower-rated counterparts by a factor of 2 to 1.
For an overview of these stock-moving metrics and others, visit Zacks.com as you prepare for the upcoming trading sessions.
Zacks Reveals Top Semiconductor Stock
This stock is just 1/9,000th the size of **NVIDIA**, which surged over +800% since our recommendation. While NVIDIA remains strong, this emerging tech stock has substantial growth potential ahead.
With robust earnings growth and an expanding customer base, it is well-positioned to meet surging demands in the fields of Artificial Intelligence, Machine Learning, and the Internet of Things. Global semiconductor manufacturing is expected to grow from $452 billion in 2021 to $803 billion by 2028.
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For more details on Meta Platforms, Inc. (META), access our free stock analysis report.
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