In the latest trading session, Facebook (FB) closed at $249.53, marking a +0.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.37%.
Prior to today's trading, shares of the social media company had lost 18.06% over the past month. This has lagged the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 5.02% in that time.
FB will be looking to display strength as it nears its next earnings release. On that day, FB is projected to report earnings of $1.91 per share, which would represent a year-over-year decline of 9.91%. Our most recent consensus estimate is calling for quarterly revenue of $19.72 billion, up 11.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.10 per share and revenue of $80.37 billion. These totals would mark changes of +25.97% and +13.68%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for FB. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.54% higher within the past month. FB currently has a Zacks Rank of #3 (Hold).
Digging into valuation, FB currently has a Forward P/E ratio of 30.75. This represents a discount compared to its industry's average Forward P/E of 38.64.
Investors should also note that FB has a PEG ratio of 1.63 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FB's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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