Meta Platforms (META) Experiences a Slight Decline: An Investor Overview

In the latest trading session, Meta Platforms (META) closed at $575.16, which reflects a minimal change of -0.23% from the previous day. This performance trails the S&P 500, which saw a daily decline of 0.18%. In comparison, the Dow experienced a drop of 0.8%, while the Nasdaq, known for its tech focus, gained 0.27%.

Over the past month, shares of Meta Platforms have risen by 2.69%. However, this growth is lagging behind the Computer and Technology sector, which has increased by 6.6%, and the S&P 500's overall gain of 4.46%.

Upcoming financial results for Meta Platforms are highly anticipated, with an earnings announcement scheduled for October 30, 2024. Analysts predict that the company will report an earnings per share (EPS) of $5.17, which indicates a significant rise of 17.77% compared to the same quarter last year. Additionally, revenue estimates stand at $40.16 billion, suggesting a growth of 17.6% from the previous year.

Looking at the overall financial year, the Zacks Consensus Estimates forecast earnings of $21.43 per share and total revenue of $161.84 billion, reflecting increases of 44.12% and 19.97%, respectively, when compared to the past year.

Investors should pay attention to any recent shifts in analyst estimates for Meta Platforms. Changes in estimates often mirror the current business trends, and positive revisions can signal a promising outlook for the company. Research shows that these revisions are closely linked to short-term stock price movements.

The Zacks Rank system, which utilizes these estimate changes, provides ratings that help guide investment decisions. This ranking system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has consistently outperformed market norms. Stocks rated #1 have seen an average annual return of +25% since 1988. For Meta Platforms, the consensus EPS estimate has risen slightly by 0.31% over the past month. Currently, the company holds a Zacks Rank of #2, indicating a Buy recommendation.

From a valuation perspective, Meta Platforms is trading at a Forward P/E ratio of 26.9. This figure is lower than the industry average of 32.33, suggesting that META shares are positioned at a discount compared to its peers.

Moreover, Meta Platforms has a PEG ratio of 1.4. The PEG ratio, a metric that accounts for a company’s expected earnings growth along with its price-to-earnings ratio, is considerably lower than the industry average of 2.19.

The Internet - Software industry, where Meta operates, falls within the Computer and Technology sector, and possesses a Zacks Industry Rank of 64, placing it in the top 26% of over 250 industries analyzed. This ranking illustrates that top-rated industries tend to outperform the lower-ranked sectors significantly.

For investors interested in tracking important stock-moving metrics and performance indicators, ongoing updates on Meta Platforms can help guide investment choices in the coming trading sessions.

Meta, Stocks, Earnings