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Meta Platforms (META) Gains But Lags Market: What You Should Know

Meta Platforms (META) closed the most recent trading day at $264.58, moving +0.37% from the previous trading session. This move lagged the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 5.66%.

Prior to today's trading, shares of the social media company had gained 13.09% over the past month. This has outpaced the Computer and Technology sector's gain of 9.07% and the S&P 500's gain of 3.44% in that time.

Wall Street will be looking for positivity from Meta Platforms as it approaches its next earnings report date. On that day, Meta Platforms is projected to report earnings of $2.82 per share, which would represent year-over-year growth of 14.63%. Our most recent consensus estimate is calling for quarterly revenue of $30.8 billion, up 6.87% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.93 per share and revenue of $127.05 billion, which would represent changes of +21.36% and +8.95%, respectively, from the prior year.

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Any recent changes to analyst estimates for Meta Platforms should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.46% higher. Meta Platforms is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Meta Platforms's current valuation metrics, including its Forward P/E ratio of 22.09. This represents a discount compared to its industry's average Forward P/E of 41.15.

Investors should also note that META has a PEG ratio of 1.01 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. META's industry had an average PEG ratio of 1.6 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow META in the coming trading sessions, be sure to utilize Zacks.com.

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

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