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Meta Platforms (META) Outpaces Stock Market Gains: What You Should Know

The most recent trading session ended with Meta Platforms (META) standing at $490.13, reflecting a +1.26% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw an increase of 0.9%.

Shares of the social media company witnessed a gain of 24.06% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.9% and the S&P 500's gain of 3.85%.

The investment community will be closely monitoring the performance of Meta Platforms in its forthcoming earnings report. In that report, analysts expect Meta Platforms to post earnings of $4.27 per share. This would mark year-over-year growth of 61.74%. In the meantime, our current consensus estimate forecasts the revenue to be $36.07 billion, indicating a 25.94% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $19.94 per share and a revenue of $158.75 billion, indicating changes of +34.1% and +17.68%, respectively, from the former year.

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Investors should also note any recent changes to analyst estimates for Meta Platforms. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 12.48% higher within the past month. As of now, Meta Platforms holds a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Meta Platforms is currently being traded at a Forward P/E ratio of 24.27. This expresses a discount compared to the average Forward P/E of 31.67 of its industry.

We can also see that META currently has a PEG ratio of 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 26% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

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