On Monday, Meta Platforms closed higher for the fourth day in a row. During the correction it dipped in sync with the market, but it held above its 200-day line. Also on Monday, Meta stock got an upgrade to its Relative Strength (RS) Rating, from 78 to 82.
The 82 RS Rating marks a milestone for Facebook, Instagram, Threads and WhatsApp parent Meta. Market research shows that stocks that go on to make the biggest gains typically have an RS Rating over 80 as they begin their biggest runs. Meta was up nearly 4% Monday.
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Meta Sales, Profit Growth Rates Accelerating
Menlo Park, Calif.-based Meta Platforms reported quarterly earnings growth this past year ranging from 37% to 78%, while revenue growth ranged from 19% to 27%. The company saw both earnings and sales growth rise last quarter. Last quarter Meta's earnings rose 50% year over year to $8.02 per share, up from 37% growth the prior quarter. Sales grew 21% to $48.4 billion, topping the prior quarter's 19% growth.
Among its other key ratings Meta has a terrific 97 Composite Rating and an Earnings Per Share Rating of 95 out of 99. Additionally, it has a best-possible A SMR Rating (sales + profit margins + return on equity) reflecting its strong fundamentals. One yellow flag to note is its D- Accumulation/Distribution Rating, which indicates that funds are selling more shares than buying.
Among Top 5 In Industry Group
Meta Platforms earns the No. 4 rank among its peers in the 68-stock Internet-Content industry group. China trucking logistics provider Full Truck Alliance is the No. 1-ranked stock in the group.
The unique IBD Relative Strength Rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the last 52 weeks matches up against the rest of the market.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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