META stock remains in the limelight as the tech firm will publish its Q3 earnings results on Wednesday, October 30, 2024. Investors have high expectations for the tech giant, which ventured into the Artificial Intelligence (AI) race early this year.
The upcoming earnings call could be a game-changer for the stock if the results are better than expected. The stock is up nearly 67% year-to-date and could surge if the earnings call turns positive.
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Buy META Stock: Q3 Earnings Results Remain Positive, Analysts
Zacks Consensus has estimated that META’s Q3 earnings results could improve 17.6% year over year. In the last four quarters, the company has delivered an average growth of 12.6%. Its quarterly revenue could surge by over $40.16 billion with an earnings per share (EPS) of $5.17. This could cause META to rally in the charts, breaking the stock’s yearly high of $602.
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Considering the 17.6% YoY growth, Zacks Consensus has estimated that META stocks have the potential to rally 34%. “META is currently trading at an attractive valuation compared to its peers. The stock has a forward price/earnings (P/E) of 26.5X, below the industry’s P/E of 32.9X. META has a robust return on equity of 34.2%,” read the forecast.
According to the latest price prediction before the Q3 earnings results, META could hit $774 if the scenario continues. The firm’s maximum upside prospect for META stock currently stands at $811. However, if the Q3 earnings results don’t come out as expected, the firm has given a downside of 25%.
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Therefore, a $425 to $433 downturn could be expected if the earnings call goes negative. META stock is now at the threshold of a rally or a bust, depending on the results. Investors who want to ride the risk are advised to take an entry position today before the call. Those who want to remain conservative should avoid taking an entry position today.