Meta Platforms (META) Sees Slight Decline: Key Insights for Investors

In the most recent trading session, Meta Platforms (META) concluded the day at $575.16, reflecting a slight decline of -0.23% from the previous trading day. This performance trails behind the broader market, as the S&P 500 experienced a loss of 0.18%. Meanwhile, the Dow Jones Industrial Average dropped 0.8%, while the Nasdaq index managed to gain 0.27%.

Over the past month, shares of Meta Platforms have shown an increase of 2.69%. However, this is less impressive compared to the gains in the Computer and Technology sector, which rose by 6.6%, and the S&P 500, which saw a gain of 4.46% during the same period.

Investors are eagerly anticipating the financial results from Meta Platforms, which are set to be released on October 30, 2024. The company is projected to report earnings per share (EPS) of $5.17, representing a significant increase of 17.77% compared to the same quarter from the previous year. Additionally, the consensus estimate for revenue is expected to reach $40.16 billion, indicating a hopeful growth of 17.6% from a year earlier.

For the full fiscal year, Zacks Consensus Estimates suggest that Meta Platforms will have earnings of $21.43 per share and revenue totaling $161.84 billion. These figures would reflect positive changes of +44.12% in earnings and +19.97% in revenue compared to last year.

It is also essential for investors to pay attention to any modifications in analyst estimates for Meta Platforms. Recent adjustments in estimates can be indicative of short-term business trends, and positive revisions often suggest a more favorable outlook for the company.

Statistical research suggests that these estimate adjustments have a direct correlation with short-term share price movements. To harness this correlation, the Zacks Rank system was developed. This system evaluates estimate changes and provides a clear and actionable rating model for stocks.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell), and it has a strong track record of outperforming the market, as validated by independent audits. Historically, stocks rated #1 have yielded an average annual return of +25% since 1988. Over the last month, the Zacks Consensus EPS estimate for Meta Platforms has increased by 0.31%. Currently, the company holds a Zacks Rank of #2 (Buy).

From a valuation perspective, Meta Platforms is trading at a Forward Price-to-Earnings (P/E) ratio of 26.9. In contrast, the average Forward P/E for its industry is approximately 32.33, indicating that Meta is currently being valued at a discount compared to its peers.

Moreover, Meta has a PEG ratio of 1.4. This ratio is similar to the P/E ratio but also accounts for the company's expected earnings growth rate. Notably, the Internet - Software industry had an average PEG ratio of 2.19 as of the last trading session.

The Internet - Software industry falls under the broader Computer and Technology sector, which holds a Zacks Industry Rank of 64, placing it within the top 26% of over 250 industries.

The Zacks Industry Rank categorizes industries from best to worst based on the average Zacks Rank of individual companies within each sector. Historical analysis indicates that industries rated in the top 50% tend to outperform those in the bottom half by a factor of 2 to 1.

Investors are encouraged to keep up with these stock-moving metrics and other essential indicators as the next trading sessions unfold.

Meta, Investors, Earnings