Facebook (FB) Gains As Market Dips: What You Should Know

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Facebook (FB) closed at $168.83 in the latest trading session, marking a +1.98% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 0.33%.

Coming into today, shares of the social media company had lost 2.33% in the past month. In that same time, the Computer and Technology sector lost 7.54%, while the S&P 500 lost 10.5%.

FB will be looking to display strength as it nears its next earnings release. On that day, FB is projected to report earnings of $1.79 per share, which would represent year-over-year growth of 110.59%. Meanwhile, our latest consensus estimate is calling for revenue of $17.69 billion, up 17.3% from the prior-year quarter.

FB’s full-year Zacks Consensus Estimates are calling for earnings of $7.80 per share and revenue of $78.43 billion. These results would represent year-over-year changes of +21.31% and +10.93%, respectively.

Any recent changes to analyst estimates for FB should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 16.11% lower within the past month. FB is currently a Zacks Rank #3 (Hold).

Looking at its valuation, FB is holding a Forward P/E ratio of 21.22. Its industry sports an average Forward P/E of 25.37, so we one might conclude that FB is trading at a discount comparatively.

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

A Netflix Primer

A Netflix PrimerNetflix has become one of the hottest sites to stream movies and television series on the internet. With that being said,...

Why haven’t I gotten my stimulus check? 6 reasons your payment might be a no-show

  The IRS started cutting stimulus checks in mid-April, and it’s already gotten money to nearly 90 million people. That’s good news for everyone who’s received...

Moderna plans to issue $1.25 billion in fresh equity following 20% stock jump

KEY POINTS Moderna said it also expects to grant the underwriters a 30-day option to buy up to an additional $187.5 million in common...

Why African-Americans may be especially vulnerable to COVID-19

COVID-19 was called the great equalizer. Nobody was immune; anybody could succumb. But the virus’ spread across the United States is exposing racial fault...

How to Find Movies on Netflix

Netflix is the largest streaming video site on the internet and one of the best sources of films and TV shows in the world....
Home of Science
Follow me