Meta Platforms(META) ZACKS·2025-04-02 17:05Core Viewpoint - Meta Platforms (META) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts, and changes in these estimates are strongly correlated with stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, Meta Platforms is expected to earn $25.61 per share, reflecting a 7.3% increase from the previous year, with a 1.7% rise in the Zacks Consensus Estimate over the past three months [8]. - The upgrade to Zacks Rank 2 positions Meta in the top 20% of Zacks-covered stocks, suggesting potential for near-term stock price appreciation [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks are considered for strong buy recommendations [9][10].