Meta Platforms Shows Mixed Performance Ahead of Earnings Report
On the last trading day, Meta Platforms (META) closed at $595.57, reflecting a slight decline of -0.27% from the previous day. During the same session, the S&P 500 slipped by 0.09%. In contrast, the Dow Jones added 0.04%, while the tech-heavy Nasdaq experienced a drop of 0.1%.
Over the past month, Meta’s shares appreciated by 5.6%. This rise beats the 3.04% gain seen in the Computer and Technology sector and contrasts with the S&P 500’s loss of 0.29%.
Upcoming Earnings: What to Expect from Meta
Investors are keenly awaiting Meta’s upcoming earnings report, with expectations for an earnings per share (EPS) of $6.76. This forecast represents a significant growth of 26.83% from the same quarter last year. Revenue predictions also look strong, with estimates suggesting $47 billion, indicating a 17.17% increase year-over-year.
For the entire fiscal year, Zacks Consensus Estimates predict earnings of $22.68 per share and a total revenue of $163.11 billion. This marks impressive growth rates of 52.52% and 20.91%, respectively, compared to the previous year.
Analyst Insights: Understanding Stock Movement
Investors should pay attention to any recent updates on analyst estimates for Meta Platforms. These estimates often reflect recent business trends. Positive revisions indicate a growing analyst confidence in the company’s performance and profitability.
Research indicates that changes in these estimates can directly affect short-term stock prices. To gauge this, the Zacks Rank system evaluates these estimate changes, providing a rating scale from #1 (Strong Buy) to #5 (Strong Sell).
The Zacks Rank system has a strong history of surpassing expectations. Stocks rated #1 have delivered an average annual return of +25% since 1988. In recent weeks, the Zacks Consensus EPS estimate for Meta has risen by 0.4%. Currently, the company holds a Zacks Rank of #2 (Buy).
Current Valuation Metrics for Meta Platforms
Presently, Meta Platforms trades with a Forward P/E ratio of 26.33, which is lower than the industry average of 32.61. The company’s PEG ratio stands at 1.31, a valuable indicator that takes into account anticipated earnings growth. For comparison, the Internet – Software industry had an average PEG ratio of 2.29 at yesterday’s close.
The Internet – Software industry belongs to the broader Computer and Technology sector. With a current Zacks Industry Rank of 31, this industry is placed among the top 13% of over 250 industries.
The Zacks Industry Rank is determined by the average Zacks Rank of individual stocks within each industry. Historically, the top 50% of industries have outperformed the bottom half by a factor of two to one.
For ongoing market analysis and additional stock metrics, investors can visit Zacks.com.
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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.
