Meta Platforms (META) Sees a Notable Surge in Stock Performance

Investors who align their strategies with the momentum investing principle believe in following a stock's recent performance trend. They operate under the idea of 'buying high and selling higher,' banking on the continuing direction of a stock's price movement to make profitable trades. While the concept of momentum in stocks is widely acknowledged, what constitutes the best measurement methods can be a subject for debate.

To demystify momentum metrics, tools like the Zacks Momentum Style Score are often used. Looking closely at Meta Platforms (META), we find a company that has earned a Momentum Style Score of A, indicating potential as a strong candidate for momentum investing.

Is Meta Platforms Winning in the Momentum Game?

To determine the strength of META's momentum, we analyze various aspects such as price changes and earnings estimate revisions. Over the last week, META's stock has witnessed a 20.51% increase compared to the flat performance of its industry. Additionally, META's recent monthly price surge of 27.14% outshines the industry's 0.91% rise.

Longer-term indicators are also promising for META. The stock has shot up by 40.64% over the past quarter and has experienced an impressive 164.16% growth in the last year, towering over the S&P 500's increments of 14.46% and 23.05%, respectively.

Another factor to consider is the trading volume, with META's 20-day average volume standing at 21,937,472 shares. A high volume paired with stock price increase generally signals a positive trend.

The Earnings Perspective

Momentum isn't solely about price trends; earnings estimate revisions play a pivotal role too. In META's case, the outlook appears bright, with 13 full-year earnings estimates moving upward in the last two months. This positive revision has raised the consensus estimate from $17.64 to $19.62 in 60 days. Forecasts for the next fiscal year are also optimistic, with 9 estimates revised upwards and no downward shifts.

Considering these dynamics, Meta Platforms holds a Zacks Rank #1 (Strong Buy) and enjoys a Momentum Score of A. Such indicators suggest META might be an excellent addition to a momentum-focused investment portfolio.

Momentum, META, Investing