Facebook (FB) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3-min read

In the latest trading session, Facebook (FB) closed at $249.53, marking a +0.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.37%.

Prior to today's trading, shares of the social media company had lost 18.06% over the past month. This has lagged the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 5.02% in that time.

FB will be looking to display strength as it nears its next earnings release. On that day, FB is projected to report earnings of $1.91 per share, which would represent a year-over-year decline of 9.91%. Our most recent consensus estimate is calling for quarterly revenue of $19.72 billion, up 11.7% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.10 per share and revenue of $80.37 billion. These totals would mark changes of +25.97% and +13.68%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for FB. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.54% higher within the past month. FB currently has a Zacks Rank of #3 (Hold).

Digging into valuation, FB currently has a Forward P/E ratio of 30.75. This represents a discount compared to its industry's average Forward P/E of 38.64.

Investors should also note that FB has a PEG ratio of 1.63 right now. 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. FB's industry had an average PEG ratio of 1.95 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow FB in the coming trading sessions, be sure to utilize Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Gazans search for remains after deadly Rafah strike

    Birds sang and planes rumbled overhead as Abdeljabbar al-Arja dug the remains of his dead neighbours from the rubble in Gaza."We can see them under the rubble and we're unable to retrieve them," Al-Arja said.

  • US imposes new curbs on Iran's access to 'low-level' tech after attack on Israel

    The U.S. is further restricting Iran's access to "low-level technology," in response to Iran's April 13 attack on Israel and its military support for Russia, according to a posting Thursday by the U.S. Department of Commerce. The U.S. is adding to the list of items that require a license for export or re-export to Iran, including items made abroad with U.S. technology, the posting said. The new restrictions build on the Commerce Department's February 2023 action targeting Iran's involvement in supplying drones to support Russia's war on Ukraine.

  • Germany arrests two over military base attack plot for Russia

    Investigators have arrested two German-Russian men on suspicion of spying for Russia and planning attacks in Germany -- including on US army targets -- to undermine military support for Ukraine, prosecutors said Thursday."The actions were intended, in particular, to undermine the military support provided from Germany to Ukraine against the Russian aggression," prosecutors said.

  • Kristen Stewart Says She Would’ve "Immediately" Dumped 'Twilight’s' Edward Cullen

    Kristen Stewart played a character enamored with Twilight’s Edward Cullen. But the actress behind Bella Swan would’ve called things with Edward quickly.

  • Poland arrests man over suspected plan to kill Zelensky

    A man suspected of aiding a plot by Russian intelligence services to assassinate Ukrainian President Volodymyr Zelensky has been arrested in Poland, Polish and Ukrainian prosecutors said Thursday.The Polish national, named only as Pawel K., is suspected of supplying information to Russian military intelligence and "helping the Russian special forces to plan a possible assassination attempt" against Zelensky, said a statement from Polish prosecutors.

  • US power, tech companies lament snags in meeting AI energy needs

    U.S. electrical systems are not expanding fast enough to meet rapidly growing power needs of technology like Generative AI, prompting data center businesses to sometimes bypass utilities, executives said at an energy conference this week. Layers of regulations, citing and permitting processes, and frequent legal fights brought by environmental and community groups, have slowed new power projects from connecting to the grid, and posed a threat to profits by traditional power companies like regulated electric utilities. "Regulation and permitting within the United States is abysmal," Brad Stansberry, who leads the financial management practice for the power and utility industry at services firm KPMG, said at the AI: Powering the New Energy Era summit in Washington on Wednesday.

  • 'Amazing!': Erin Burnett Flags Marjorie Taylor Greene's Fans — In Russian State Media

    "Russian state television can’t get enough of her," the CNN host said of the extremist lawmaker.

  • Banned Venezuela opposition leader insists she is 'Plan A'

    She has been banned from taking part in the July presidential election, but Venezuelan opposition leader Maria Corina Machado keeps campaigning, refusing to settle for a backup plan.She has ruled out the idea of a boycott, as used by opposition politicians in the 2018 election, the results of which many countries refused to accept.

  • Croatian parties scramble to form government in hung parliament

    Croatian parties scrambled to form a ruling coalition Thursday, a day after an election in which the ruling conservative party won the most seats but not a parliamentary majority.An ultra-conservative party and a green-left one won 11 and 10 seats each.

  • Abdulla Yameen: the man behind Maldives' isolation

    After jailing potential rivals and isolating the Maldives from its traditional friends, former president Abdulla Yameen was put behind bars with his attempt at a political comeback thwarted.He had imprisoned or forced into exile nearly all his potential rivals by the time he had been voted out in 2018.

  • Biden's cannibals story leaves White House in the lurch

    Joe Biden raised eyebrows when he hinted that cannibals on the island of New Guinea may have eaten his uncle's body after he was shot down during World War II. And the White House and official records indicated Thursday that -- as with many a family legend -- the facts may indeed be a bit different."He got shot down in New Guinea, and they never found the body because there used to be a lot of cannibals, for real, in that part of New Guinea," Biden later told an audience of steel workers in Pitt

  • Why has Sydney Sweeney become the most divisive woman in Hollywood?

    The megastar is at the heart of a political tug of war — and her breasts are polarising US society. What is really going on, asks Maddy Mussen

  • Three women arrested for alleged involvement in prostitution syndicate which operated on Telegram

    Three women, aged between 23 and 42, have been arrested for alleged involvement in prostitution activities that operated via Telegram. Read on.

  • Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.

    Cases of colon cancer have risen in younger people by 2% a year since 2011. Knowing the signs and symptoms is crucial for catching it early.

  • Woman, 23, arrested after allegedly extorting S$8,450 from male victim over escort services

    A 23-year-old woman was arrested for suspected involvement in a case of extorting a male victim of S$8,450. Read on.

  • Ukraine’s frontline is collapsing – and Britain may soon be at war

    While Western eyes are fixed on Tehran and Tel Aviv, Ukraine’s frontlines are showing clear signs of crumbling. There is a very real possibility they could crumble this summer if we do not throw the kitchen sink at Russia. Even if we do, it may already be too late for the weapons and munitions long promised by the West to save the day.

  • Beijing half marathon: Top three stripped of medals after investigation

    The top three finishers of the Beijing half marathon are stripped of their medals after an investigation into the controversial result.

  • Best fixed deposit rates 2024: Grow your money with little risk

    The post Best fixed deposit rates 2024: Grow your money with little risk appeared first on SETHLUI.com.

  • Bernardo Silva’s penalty: What was he thinking?

    All but a small handful of Manchester City players and staff had already retired to the dressing room, dazed and doubtless a little confused about what had just unfolded, by the time Bernardo Silva started his slow trudge off the pitch.

  • Why Emiliano Martinez was not sent off despite second yellow card

    Aston Villa booked their place in the Europa League semi-finals in dramatic fashion by winning a drama-filled penalty shootout, where goalkeeper Emiliano Martinez received his second yellow card but was not sent off.