FB consolidating pending earnings breakout
Updated
Looking at FB on the daily, the price along with major moving averages are converging to the 260-270 range.
Depending on how earnings go, FB looks prime for a breakout in either direction, although I think this will break out to the upside.
FB is trading at a reasonable ttm PE multiple compared to other FAANG stocks (26 compared to 30-40 for AAPL MSFT & GOOG) and FB hasn't traded at this multiple since the 180's.
According to estimates from finviz, the expected EPS growth in the next years is 20% annual. If this is true, FB trades at a future multiple of 20! Very cheap!
I would get in at 260-270 as price ranges narrow, and set a stop ahead of earnings in the event a catastrophe happens at 245. Being bullish on FB, I would let a breakout to the upside run on for the long term.
Depending on how earnings go, FB looks prime for a breakout in either direction, although I think this will break out to the upside.
FB is trading at a reasonable ttm PE multiple compared to other FAANG stocks (26 compared to 30-40 for AAPL MSFT & GOOG) and FB hasn't traded at this multiple since the 180's.
According to estimates from finviz, the expected EPS growth in the next years is 20% annual. If this is true, FB trades at a future multiple of 20! Very cheap!
I would get in at 260-270 as price ranges narrow, and set a stop ahead of earnings in the event a catastrophe happens at 245. Being bullish on FB, I would let a breakout to the upside run on for the long term.
Comment
Excellent price movement by FB, getting in on this early in the 260 range has paid off well. 25% gain in 2 months.
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