Meta Platforms (META) Declines More Than Market: Some Information for Investors

In the latest trading session, Meta Platforms (META) closed at $575.16, reflecting a -0.23% change from the previous day. This performance trails behind the S&P 500's daily loss of 0.18%. In the same trading day, the Dow Jones Industrial Average experienced a loss of 0.8%, while the Nasdaq, known for its focus on technology, increased by 0.27%.

Over the last month, the shares of Meta Platforms have seen an increase of 2.69%. However, this growth is less than the 6.6% gain recorded in the Computer and Technology sector, and it also lags behind the S&P 500's increase of 4.46%.

Investors are keenly anticipating Meta Platforms' upcoming financial results, which are scheduled for announcement on October 30, 2024. The estimated earnings per share (EPS) for this quarter stands at $5.17, representing a significant 17.77% increase compared to the same quarter last year. Additionally, analysts anticipate that the company will generate revenue of $40.16 billion, indicating a 17.6% rise from the same period the previous year.

For the full year, the Zacks Consensus Estimates predict an EPS of $21.43 and revenue of $161.84 billion, which would constitute increases of 44.12% and 19.97%, respectively, from the previous year.

Recent adjustments to analyst estimates for Meta Platforms can provide crucial insights into the company’s short-term business trends. Positive revisions in estimates are often interpreted as a favorable indication of the company’s future performance.

Research indicates a connection between these estimate revisions and short-term share price movement. The Zacks Rank system is designed to leverage this relationship. It provides a straightforward rating model based on these estimate changes.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell), and has a strong history of outperformance, as validated by third-party audits. Stocks rated #1 have produced an average annual return of +25% since 1988. In the last month, the Zacks Consensus EPS estimate for Meta Platforms has seen a rise of 0.31%, and the company currently holds a Zacks Rank of #2 (Buy).

From a valuation perspective, Meta Platforms is trading at a Forward P/E ratio of 26.9. In contrast, the average Forward P/E ratio within its industry is 32.33, suggesting that Meta Platforms shares are currently available at a discount relative to its peers.

Furthermore, Meta Platforms has a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio but takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software sector was approximately 2.19 at yesterday's market close.

The Internet - Software industry falls within the broader Computer and Technology sector, which has a Zacks Industry Rank of 64. This rank places it in the top 26% of over 250 industries.

The Zacks Industry Rank is determined based on the average Zacks Rank of individual companies, indicating that top-rated industries tend to outperform lower-rated ones by a factor of two to one.

Investors are encouraged to keep abreast of these important metrics on stock performance and trends in the days leading up to Meta Platforms' upcoming earnings announcement.

Meta, Stocks, Market