In the last Facebook trading session (FB – Free Report) closed at $ 313.02, up 0.02% from the previous day. That change lagged behind the S&P 500’s daily gain of 0.42%.
Prior to today’s trading, shares in the social media company were up 15.25% in the past month. This outpaced the growth of the computer and technology sector by 5.45% and the growth of the S&P 500 by 6.32% during this time.
FB will be looking to showcase strength as it gets closer to its next earnings report, which is expected on April 28, 2021. On that day, FB is forecast to report earnings of $ 2.36 per share, representing 38.01% year-on-year growth. Our latest consensus estimate is $ 23.69 billion in quarterly revenues, up 33.58% from a year earlier.
Our Zacks consensus forecasts full-year earnings of $ 11.28 per share and revenues of $ 108.48 billion, representing + 11.79% and + 26.19% changes, respectively. compared to the previous year.
Any recent changes in FB analysts’ estimates should also be noted by investors. Recent developments tend to reflect recent short-term business trends. With this in mind, we can view positive revisions as a sign of optimism about the company’s business prospects.
Our research shows that these valuation changes are directly related to short-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides an effective ranking system.
The Zacks rating system ranges from # 1 (Strong Buy) to # 5 (Strong Sell). It has an excellent track record of success, externally audited, with the # 1 stock having generated an annualized return of + 25% since 1988. The Zacks Consensus EPS has remained unchanged over the past month. FB is Zacks # 3 (Hold) right now.
Going deeper into pricing, FB currently has a forward P / E ratio of 27.16. Its industry has an average forward P / E ratio of 32, so it can be inferred that FB is trading at a comparatively discount.
We can also see that the current PEG ratio for FB is 1.41. This metric is used in a similar way to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of stock returns. Internet services stocks average a PEG of 1.8 based on yesterday’s close.
The Internet services industry is part of the computer and technology sector. This industry currently has a Zacks 155 rating, placing it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks rating for individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by 2: 1.
You can find more information on all of these metrics and more at Zacks.com.