Facebook (FB) Dips More Than Broader Markets: What You Should Know

·3-min read

Facebook (FB) closed at $331.08 in the latest trading session, marking a -1.68% move from the prior day. This change lagged the S&P 500's daily loss of 0.54%.

Heading into today, shares of the social media company had gained 8.64% over the past month, outpacing the Computer and Technology sector's gain of 6.51% and the S&P 500's gain of 1.91% in that time.

Wall Street will be looking for positivity from FB as it approaches its next earnings report date. In that report, analysts expect FB to post earnings of $3.03 per share. This would mark year-over-year growth of 68.33%. Meanwhile, our latest consensus estimate is calling for revenue of $27.89 billion, up 49.25% from the prior-year quarter.

FB's full-year Zacks Consensus Estimates are calling for earnings of $13.18 per share and revenue of $116.21 billion. These results would represent year-over-year changes of +30.62% and +35.18%, respectively.

Any recent changes to analyst estimates for FB should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.99% higher. FB currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, FB is holding a Forward P/E ratio of 25.54. This valuation marks a discount compared to its industry's average Forward P/E of 28.48.

Also, we should mention that FB has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FB's industry had an average PEG ratio of 2.03 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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