Prior to Earnings, ValuEngine Rates Facebook a BUY

For today’s bulletin, we take a look at Facebook $FB. We also provide a link to download a FREE STOCK REPORT on the company.

VALUATION WATCH: Overvalued stocks now make up 52.56% of our stocks assigned a valuation and 20.62% of those equities are calculated to be overvalued by 20% or more. Twelve sectors are calculated to be overvalued.

Facebook Inc. (FB) operates a social networking website worldwide. The Company’s products for users are free of charge and available on the Web, mobile Web, and mobile platforms, such as Android and iOS. Its website enables users to connect, share, discover, and communicate with each other. The Facebook Platform is a set of tools and application programming interfaces that developers can use to build social apps on Facebook or to integrate their Websites with Facebook. It offers products that enable advertisers and marketers to engage with its users. Facebook Inc. is headquartered in Menlo Park, California.

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Facebook has been in the news lately for all the wrong reasons, privacy violations, Russian “fake news” sites, Cambridge Analytica stealing personal data–which also found its way to Russia, etc. To top it all off, they have an arrogant and seemingly clueless founder in Mark Zuckerberg–who was making statements last week that indicated he thinks Holocaust deniers have a valid point of view and should not be removed from Facebook.

But, throughout its history as a public company, Facebook has added market share and value no matter how bad the PR environment. As you can see from our chart below, onward and upward is the story here.

As you can also see below, our models have not been a fan of this company. HOLD has been the default rating. But, now we rate it a BUY, which is not the norm.

The company reports earnings this week–on Wednesday. That will be a good time to evaluate how the company is doing despite the almost constant stream of bad headlines. Analysts are especially concerned with company holdings like Instagram, which is expected to play an important role in continuing Facebook’s overall growth.

So, keep an eye on those earnings Wednesday, they will provide another piece of the puzzle.

VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on FACEBOOK INC-A for 2018-07-20. Based on the information we have gathered and our resulting research, we feel that FACEBOOK INC-A has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.

You can download a free copy of detailed report on Facebook Inc. (FB) from the link below.

ValuEngine Forecast
1-Month 211.13 0.57%
3-Month 211.53 0.76%
6-Month 215.81 2.80%
1-Year 224.23 6.81%
2-Year 221.45 5.48%
3-Year 217.30 3.51%
Valuation & Rankings
Valuation 9.35% overvalued Valuation Rank(?) 36
1-M Forecast Return 0.57% 1-M Forecast Return Rank 87
12-M Return 27.60% Momentum Rank(?) 80
Sharpe Ratio 1.50 Sharpe Ratio Rank(?) 98
5-Y Avg Annual Return 41.11% 5-Y Avg Annual Rtn Rank 97
Volatility 27.47% Volatility Rank(?) 54
Expected EPS Growth 16.32% EPS Growth Rank(?) 45
Market Cap (billions) 587.20 Size Rank 100
Trailing P/E Ratio 29.04 Trailing P/E Rank(?) 46
Forward P/E Ratio 24.96 Forward P/E Ratio Rank 21
PEG Ratio 1.78 PEG Ratio Rank 21
Price/Sales 13.17 Price/Sales Rank(?) 10
Market/Book 10.19 Market/Book Rank(?) 15
Beta 0.77 Beta Rank 50
Alpha 0.16 Alpha Rank 81


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Steve Hach
Senior Editor