Facebook (FB) closed at $162.44 in the latest trading session, marking a -1.45% move from the prior day.
Facebook
(FB) closed the most recent trading day at $162.44, moving -1.45% from
the previous trading session. The stock lagged the S&P 500's daily
gain of 0.36%. Elsewhere, the Dow gained 0.73%, while the tech-heavy
Nasdaq lost 0.11%.
Prior
to today's trading, shares of the social media company had lost 7.42%
over the past month. This has lagged the Computer and Technology
sector's loss of 0.17% and the S&P 500's gain of 0.73% in that time.
Wall
Street will be looking for positivity from FB as it approaches its next
earnings report date. This is expected to be November 7, 2018. The
company is expected to report EPS of $1.48, down 6.92% from the
prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue
is projecting net sales of $13.83 billion, up 33.94% from the year-ago
period.
For
the full year, our Zacks Consensus Estimates are projecting earnings of
$7.08 per share and revenue of $55.46 billion, which would represent
changes of +14.94% and +36.41%, respectively, from the prior year.
Investors
might also notice recent changes to analyst estimates for FB. These
recent revisions tend to reflect the evolving nature of short-term
business trends. With this in mind, we can consider positive estimate
revisions a sign of optimism about the company's business outlook.
Based
on our research, we believe these estimate revisions are directly
related to near-team stock moves. Investors can capitalize on this by
using the Zacks Rank. This model considers these estimate changes and
provides a simple, 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. Over the past month,
the Zacks Consensus EPS estimate remained stagnant. FB is holding a
Zacks Rank of #4 (Sell) right now.
Digging
into valuation, FB currently has a Forward P/E ratio of 23.24. For
comparison, its industry has an average Forward P/E of 33.89, which
means FB is trading at a discount to the group.
It
is also worth noting that FB currently has a PEG ratio of 1.05. 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. The
Internet - Services was holding an average PEG ratio of 2.55 at
yesterday's closing price.
The
Internet - Services industry is part of the Computer and Technology
sector. This industry currently has a Zacks Industry Rank of 152, which
puts it in the bottom 40% of all 250+ industries.
The
Zacks Industry Rank includes is listed in order from best to worst in
terms of the average Zacks Rank of the individual companies within each
of these sectors. 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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