Social Networking giant Facebook stocks gave a Broadening Top Breakout on last Friday. So Buy Facebook stocks for short-term gains. High growth stocks normally trade above the average valuation. Facebook stock has a price to earnings ratio of 38.64 with 24% return on equity.
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Facebook Stocks Fundamental Analysis:
The Facebook Stock is one of the high growth stock. November 1, the Facebook stock will release its third-quarter result. As per the movement of the stock on Friday I think Facebook third-quarter results will beat analysts estimates and the Facebook stock will hit $200.
Monness, Crespi, Hardt, &Co., Inc., Upgrades Facebook stocks from earlier neutral to Buy. As the Equity research firm expects Facebook earnings will outperform the market.
On November 1, Facebook will release its third-quarter results after market hours.
Facebook Stocks Technical Analysis:
Facebook stock up over 4% on Friday and closed the day at 177.88. Some strong hands entered the stock anticipating strong third-quarter results on the first November. The Facebook stock also has broken out of short-term broadening top on Friday.
After a strong uptrend from $148, the stock halted around $176. Till then the stock consolidates between $162 to $177 and forms broadening top stock chart pattern.
Now the stock breaks out of the broadening top. So expect the continuation of the prior uptrend. And the stock may rally till $207.
The height of the broadening top is around $15. So normally short-term target may be $176+$15=191 and sometimes extended target may be around $207.
Buy Facebook Stocks:
- Facebook is the leader in social networking. Social networking is one of the high growth platforms for online media companies.
- For its, Goodwill Facebook trades at high Price to earnings ratio. It can be justified by its high growth rate
- Facebook is a risk-free stock to accumulate for long-term
- Analysts are expecting bumper results from Facebook. Facebook always beats analysts estimates
- Charts tell what is developing inside the company. Now Facebook breaks out after good consolidation so some positives are developing for the company.
- Broadening top breakout normally gives minimum 20 % returns.
So Buy Facebook stocks for short-term quick gains as well as long-term steady gains.