Meta Inc NASDAQ: META stories Thursday of subsequent week in what shall be one of many extra carefully watched stories of the yr thus far. The tech big ended 2023 on a excessive, and its rally has, for essentially the most half, continued into 2024, with shares up near 10% on the place they began the yr. Yesterday noticed them set a contemporary all-time excessive, topping 2021’s effort, so it’s clear expectations are excessive from the road for a knockout report. 

Shopping for right into a inventory forward of a contemporary earnings report might be dangerous enterprise, as earnings are typically binary and infrequently impartial. They’re both thought-about adequate, and the inventory rallies, or not adequate, and the inventory falls. In different instances, when a inventory has rallied to the extent that Meta has, you may be inclined to suppose a whole lot of the upside is already baked into the share value, and the upcoming report would have to be crimson sizzling to justify even additional beneficial properties. When expectations are so nice, any slip throughout the vary of metrics or perceived unfavorable momentum can spell the tip of a rally, so why threat it with Meta? 

Properly, however all of this, we right here at MarketBeat suppose there are nonetheless a number of explanation why it’s value shopping for into Meta forward of their This fall launch. Listed here are the highest three. 

Elementary image 

For starters, all the important thing basic metrics have been trending in the best route for a number of quarters now, and this pattern exhibits no indicators of stopping. October’s launch noticed them set a file excessive for quarterly income, whereas Meta’s earnings per share elevated for the fourth straight quarter. Bills had been seen persevering with to fall, which helped the corporate’s working revenue additionally hit a file with a 40% soar yr on yr. 

That form of momentum doesn’t go away simply, and Meta buyers have good purpose to count on extra of the identical this time round, too. The prospect of falling charges this yr, which has solely elevated for the reason that final report, must also have a component to play within the firm’s outlook and ahead steering, which is anticipated to return in nicely forward of the present consensus amongst analysts. 

Bullish analysts

Past Meta’s inside momentum, the exterior consultants are additionally favoring a robust report and extra beneficial properties. This month alone has seen a number of of the Wall Avenue heavyweights come out bullishly on Meta’s prospects, not simply within the brief time period however by 2024 as a complete. 

Earlier this month, the staff at Mizuho mentioned that improved monetization of Meta’s Reels and WhatsApp merchandise ought to end in a constructive shock when the corporate stories. Analyst James Lee’s value goal of $470, with its prompt upside of not less than 25% from present ranges, exhibits simply how constructive the shock may very well be. 

In the same vein, the staff at Monness Crespi Hardt was additionally bullish with their feedback earlier this month, noting that Meta has skilled a “beautiful reversal of fortunes” that’s set to proceed by 2024, with a formidable This fall report merely the primary milestone. 

Over the previous week alone, we’ve seen RBC, JMP Securities, Piper Sandler, and Wells Fargo all reiterate their Purchase or Outperform ranking on Meta shares, with boosted value targets in addition. 

Spectacular technical setup

So, with the basics ticking over properly and the analysts positioning for a robust beat, what else is there to love in regards to the inventory sufficient to get entangled now? Properly, the technical setup is especially interesting. Meta has been setting a sample of upper highs and better lows for months now whereas not permitting its shares to get too sizzling on the similar time. Although the present rally is at a contemporary excessive, with beneficial properties of greater than 330%, the inventory doesn’t really feel or look overbought. 

Its relative power index studying is hovering round 70, so it’s heat to the contact however in a great way. Yesterday’s pull-back from the sooner excessive would have carried out it no hurt in any respect and, in reality, would have solely strengthened the inventory’s capability to tear into a brand new rally if the outcomes are as sizzling as anticipated subsequent week. 

Whereas Meta Platforms at present has a “Reasonable Purchase” ranking amongst analysts, top-rated analysts imagine these 5 shares are higher buys.

View The 5 Shares Right here