Meta stock — along with travel stocks MakeMyTrip and Trip.com — made Tuesday's IBD Screen Of The Day, a column that focuses on top ideas in the IBD Stock Screener.
Tuesday's stocks to watch come from the Rising Profit Estimates screen, which finds issues attracting higher price targets and analyst upgrades.
Meta Stock
Meta Platforms continues to trade about 58% above a 197.16 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares broke out in mid-March, their uptrend gaining steam after Meta's strong earnings results on April 26 and July 26.
After a pullback to the 10-week moving average, Meta stock found support. It is in a buy zone from 287.50 to 316.25. Shares have eased back into that range, but there's risk as the stock now trends downward.
The social media giant is an IBD Leaderboard stock.
On July 26, Meta Platforms said it earned $2.98 a share on sales of $32 billion in the June quarter. Analysts polled by FactSet had expected Meta earnings of $2.91 a share on sales of $31.08 billion. On a year-over-year basis, Meta earnings increased 21% while sales advanced 11%.
The social network is a turnaround story amid declining earnings and revenue. But after another announcement of new job cuts, annual earnings estimates have improved yet again.
Wall Street has sharply hoisted the company's profit estimates recently and see profit up 110% this year to $18 a share. A prior forecast saw a 45% rise, which in turn was way up from an earlier jump of 12%.
For 2024, Meta earnings are expected to rise 19%.
Amid strong fundamentals and big price gains since early November, Meta stock boasts a perfect 99 IBD Composite Rating, according to IBD Stock Checkup.
Travel Stocks MakeMyTrip, Trip.com Near Buy Points
Outside of Meta stock, travel stock leaders MakeMyTrip and Trip.com are just below their latest buy points in today's stock market.
MMYT stock is trying to break out past a long consolidation's 34.68 buy point, with strong gains in recent weeks.
On Aug. 1, the company reported stronger-than-expected fiscal-Q1 results, sparking a nearly 10% surge in big volume. MakeMyTrip earned 30 cents a share on sales of $196.7 million. EPS soared 500%, while revenue jumped 38% vs. the year-ago period.
For the fiscal year ending in March, MakeMyTrip's earnings are expected to surge 83%, to 88 cents a share, before climbing an additional 52% in 2025.
Trip.com is just 1% below a 40.17 buy point in a consolidation that reaches back to January.
For 2023, Wall Street expects the firm's annual earnings to jump 444% to $1.55 a share. A 22% increase in expected in 2024.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
