Why Meta Platforms (META) is a Top Momentum Stock for the Long-Term

Zacks research identifies Meta Platforms (META) as a top momentum stock for the long-term, supported by its B ratings in both Momentum and overall VGM Style Scores, complementing its #3 (Hold) Zacks Rank. The company's shares have gained 11.5% in the past four weeks, driven by 18 upward analyst earnings estimate revisions for fiscal 2025, which raised the Zacks Consensus Estimate to $27.98 per share, and an impressive average earnings surprise of +20.5%.

Analysis

Meta Platforms (META) is exhibiting strong positive momentum, underpinned by a significant upward revision in analyst earnings estimates, despite its neutral Zacks #3 (Hold) rating. The stock has appreciated 11.5% over the past four weeks, a move supported by its B-grade Momentum Style Score. Critically, this price action is reinforced by fundamental sentiment, as 18 analysts have revised fiscal 2025 earnings estimates upward within the last 60 days. This has propelled the Zacks Consensus Estimate for fiscal 2025 to $27.98 per share, an increase of $2.73. The company also has a strong track record of outperforming expectations, evidenced by an average earnings surprise of +20.5%. While the official rank is 'Hold', the combination of a 'B' grade in the composite VGM (Value, Growth, Momentum) score and the positive earnings forecast revisions suggests that the underlying factors are currently more bullish than the top-line rating indicates.

Key Decisions for Investors

• Investors should weigh the strong upward trend in fiscal 2025 earnings estimates, a key forward-looking indicator, against the more cautious signal of the current Zacks #3 (Hold) rank.
• For momentum-oriented strategies, the stock's 11.5% gain over the last four weeks and its 'B' Momentum Score suggest it is a candidate for consideration, but this should be balanced with its neutral overall rating.
• It is crucial to monitor for any change in the trend of analyst earnings revisions, as this appears to be the primary driver of recent positive performance and would likely precede any change in the stock's official Zacks Rank.