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Meta Platforms (META) Advances But Underperforms Market: Key Facts

Meta Platforms (META) closed at $508.84 in the latest trading session, marking a +0.27% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.85% for the day. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq increased by 1.53%.

Coming into today, shares of the social media company had gained 7.55% in the past month. In that same time, the Computer and Technology sector lost 3.6%, while the S&P 500 gained 3.11%.

Analysts and investors alike will be keeping a close eye on the performance of Meta Platforms in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.66, signifying a 44.27% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $38.15 billion, up 19.22% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $20.16 per share and a revenue of $158.97 billion, representing changes of +35.57% and +17.84%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for Meta Platforms. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. Currently, Meta Platforms is carrying a Zacks Rank of #3 (Hold).

Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 25.17. This denotes a discount relative to the industry's average Forward P/E of 30.18.

It's also important to note that META currently trades at a PEG ratio of 1.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.73 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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

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