Today’s Bull of the Day is a bit of a departure from my usual Bull of the Day articles. I try to highlight a story that not everyone has heard. I like uncovering strength in earnings trends that perhaps people didn’t know about. Much like my Bear of the Day articles highlight weakness in trends that I’m betting not everyone knows.
Today’s Bull of the Day is the very well-known Meta Platforms (META). Meta is the company formerly known as Facebook. Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, Instagram, Messenger and WhatsApp.
Image Source: Zacks Investment Research
I was surprised to see the sort of earnings growth numbers that Meta is forecast to deliver this year and next. Over the course of the last sixty days, two analysts have increased their earnings estimates for the current year while three have done so for next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from $10.44 to $11.94 while next year’s number is up from $12.92 to $14.92. This has translated to 21.46% earnings growth this year and 25.02% next year.
This is the reason why the stock is a Zacks Rank #1 (Strong Buy). These bullish estimates hit the wires prior to the company unveiling its Twitter competitor, Threads. With the early adoption numbers through the roof, this could be yet another source of earnings for the company. Over the first 20 hours, the app is said to have attracted over 20 million users.
— David Bartosiak
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Source: Zacks