The so-called FAANG stocks — Facebook (FB – Free Report) , Amazon (AMZN – Free Report) , Apple (AAPL – Free Report) , Netflix (NFLX – Free Report) and Alphabet (GOOGL – Free Report) – which were once investors’ darling and the biggest driver of the nine-year bull run, were hit hard recently on investors’ cautious approach. In fact, this approach compelled them to shun growth stocks. Per Zacks, FAANG stocks have declined 9.3% on average over the past three months and 6.5% so far this month.
Streaming giant, Netflix, the first company in the FAANG group to report Q3 earnings on Oct 16, impressed investors as its shares soared as much as 15% in aftermarket hours following blockbuster earnings. This helped the FAANG group to regain momentum. The other four members are due to report this week and the next.
Facebook is expected to release its earnings report on Oct 30 after market close. It has a Zacks Rank #3 (Hold) and an Earnings ESP of +1.07%. According to our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 when combined with a positive Earnings ESP of +1.07%. According to our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3, when combined with a positive Earnings ESP, increases our chances of predicting an earnings beat, while a Zacks Rank #4 or 5 (Sell rated) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The social media giant has witnessed negative earnings estimate revision of a penny for the to-be-reported quarter over the past month, indicating a year-over-year decline of 7.55%. However, Facebook has delivered positive earnings surprises in the last four quarters, with an average beat of 14.80%. Revenues are expected to grow 33.89% for the quarter. The stock has a solid Growth Score of B and belongs to a top-ranked Zacks industry (top 37%). Shares of FB have declined 26.9% in the past three months.
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