Meta Platforms will announce its fourth quarter earnings results today after the market closes. Also today, the Relative Strength (RS) Rating for Meta stock climbed into a higher percentile, rising to 72, up from 69.
The upgraded 72 RS Rating means Meta stock is outperforming 72% of stocks in IBD's database on price performance. When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. Research show that typically growth stocks have an RS Rating north of 80 in the early stages of their moves. See if Meta Platforms can continue to show renewed price strength and hit that benchmark.
Looking For The Best Stocks To Buy And Watch? Start Here
Meta Stock Picking Itself Up Off The Ground
Menlo Park, Calif.-based Meta Platforms, formerly known as Facebook, is among the FANG stocks that plunged during the 2022 bear market. It plunged from a 384 intraday high in early September 2021 to an 88.41 low when it bottomed at the end of October last year. Meta stock has since climbed about 60% and traded at 148.19 Tuesday afternoon, up fractionally for the day. It's still far below its all-time high though. Its earnings report could spark a move higher or drive it back down.
How Did Your Online Broker Do In IBD's 2023 Best Online Broker Survey?
Among other key ratings, Meta stock has a mediocre 59 Earnings Per Share Rating and also a middling 66 Composite Rating. However, its A- Accumulation/Distribution Rating, on an A+ to E scale, shows that big money investors such as ETFs and insurance company investment funds think that better days are ahead for the social media giant.
A Turnaround In Works After Growth Slowed?
Meta posted a profit in Q3, although it dropped 49% from the same quarter a year earlier, to $1.63 per share. Its revenue slid 4% to $27.7 billion. Investors are looking for a return to year-over-year profit growth to spark a rise.
Meta stock holds the No. 17 rank among its peers in the Internet-Content industry group. China's Baidu and digital platforms provider Ziff Davis are among the group's highest-rated stocks.
For more background on Meta Platforms, check out these stories.
The exclusive Relative Strength Rating from Investor's Business Daily measures share price action with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
