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.
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