Market Continues To Underestimate Meta Platforms

Summary:

• Meta’s stock is undervalued as the market prices in only 11% annual EPS growth, below historical growth rates of 27% to 34%.
• I also believe there is potential for multiple expansion and earnings growth above expectations.
• Despite a Hold rating due to not meeting my 100% upside criterion, I will add to Meta, expecting it to outperform the market.

The Meta Investment Thesis

We often hear that there is no way to generate alpha in the large cap space because the market is so efficient that everything is priced in. However, if we look at the five-year performance

Analyst’s Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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