Facebook (FB – Free Report) closed at $ 332.46 in the last trading session, up 0.67% from the previous day. The stock outperformed the S&P 500’s daily gains by 0.47%.
Today, shares in the social media company are up 9.16% in the past month, outpacing a 2.06% rise in the computer and technology sector and a 0.12% fall in the S&P 500 over that time.
FB will strive to demonstrate its strength as the next income statement approaches. In this report, analysts expect FB to earn $ 3.03 per share. This means an increase of 68.33% over the same period last year. Meanwhile, our latest consensus forecast is $ 27.72 billion in revenue, up 48.34% from the previous quarter.
Our Zacks consensus forecast for full year earnings of $ 13.18 per share and revenues of $ 116.29 billion, representing + 30.62% and + 35.28% changes, respectively, from the previous year.
Investors may also notice recent changes in FB analysts’ estimates. These recent developments tend to reflect the changing nature of short-term business trends. With this in mind, we can view positive revisions as a sign of optimism about the company’s business prospects.
Based on our research, we believe that these revisions are directly related to the company’s stock movement. We developed the Zacks ranking to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable rating model.
The Sachs rating system, which ranges from # 1 (Strong Buy) to # 5 (Strong Sell), has an impressive track record of excellence, externally audited, with # 1 stock generating + 25% CAGR since 1988. The Zacks Consensus EPS is up 0.99% over the past month. FB is currently ranked # 1 in the Zacks (Active Buy) rating.
Investors should also pay attention to FB’s current valuation numbers, including its forward P / E ratio of 25.05. In comparison, his industry has an average forward P / E of 29.21, which means FB is trading at a discount to the group.
Investors should also note that FB currently has a PEG of 1.24. 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 earnings. At yesterday’s close, the average PEG for the FB industry was 1.9.
The Internet services industry is part of the computer and technology sector. This industry currently has a Zacks rating of 169, placing it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank measures the strength of our individual 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.
Be sure to keep an eye on all of these and many more stock movement indicators on Zacks.com.