Facebook (FB) closed the most recent trading day at $186.82, moving -1.64% from the previous trading session. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Prior to today's trading, shares of the social media company had gained 4.33% over the past month. This has outpaced the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 3.23% 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 $1.94 per share. This would mark year-over-year growth of 10.23%. Meanwhile, our latest consensus estimate is calling for revenue of $17.33 billion, up 26.23% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.39 per share and revenue of $70.31 billion. These totals would mark changes of -15.59% and +25.91%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for FB. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FB currently has a Zacks Rank of #3 (Hold).
Investors should also note FB's current valuation metrics, including its Forward P/E ratio of 29.7. This represents a premium compared to its industry's average Forward P/E of 26.15.
Also, we should mention that FB has a PEG ratio of 1.38. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.64 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 38% of all 250+ industries.