Here's Why Meta Platforms (META) is a Strong Growth Stock

Zacks Investment Research suggests Meta Platforms (META), currently ranked #3 (Hold), could be a strong growth pick due to its 'A' Growth Style Score and 'B' VGM Score. The company's year-over-year earnings are projected to grow 7% this fiscal year, supported by 11 upward earnings estimate revisions in the last 60 days, increasing the Zacks Consensus Estimate to $25.53 per share for fiscal 2025; META also boasts a 17.3% average earnings surprise.

Analysis

Meta Platforms (META), currently assigned a Zacks Rank #3 (Hold), demonstrates compelling growth attributes, evidenced by its 'A' Growth Style Score and a 'B' VGM Score. The company is projected to achieve a 7% year-over-year earnings growth in the current fiscal year, and it boasts a significant average earnings surprise of 17.3%. Analyst sentiment for fiscal 2025 is strengthening, with 11 upward earnings estimate revisions in the last 60 days, elevating the Zacks Consensus Estimate by $0.06 to $25.53 per share. This positive outlook is supported by Meta's extensive user engagement, with its family of applications serving approximately 3.43 billion daily active users as of March 31, 2025. While the #3 Rank suggests a neutral short-term outlook according to Zacks, the strong Growth Score aligns with Zacks' guidance that Hold-rated stocks with A or B Style Scores can offer upside potential, positioning META as a noteworthy consideration for growth-focused portfolios.

Key Decisions for Investors

• Investors prioritizing growth may consider META's strong 'A' Growth Style Score and positive earnings estimate trajectory as favorable indicators, despite its neutral Zacks #3 (Hold) rating.
• The pattern of 11 upward earnings estimate revisions for fiscal 2025 and a historical average earnings surprise of 17.3% warrants close monitoring of upcoming earnings reports and further analyst estimate adjustments for signs of continued strength.
• Given that Zacks methodology suggests potential upside for #3 ranked stocks with strong Style Scores, META should be on investors' short list, particularly if seeking exposure to large-cap growth with improving earnings sentiment.