Why Meta Could Be A $600 Stock Within Weeks

The first half of 2024 saw strong performance across global markets, with investors buoyed by positive economic data and consistent signs that inflation had been tamed. Major indices like the S&P 500 posted impressive gains of as much as 20%, reflecting a widespread risk-on sentiment that propelled many stocks, especially tech, to new heights. 

However, the past few weeks have seen a switch in this sentiment and some aggressive selling. It's been mostly triggered by some questionable job reports that fueled concerns that the Fed may have delayed cutting rates for too long, which could force the economy into a recession. 

Entry Opportunities: Why Meta Platforms Stands Out

Needless to say, this period of volatility has led to a market-wide pullback in stocks, presenting, for those of us interested in taking advantage of it, a potentially strong entry opportunity. With the market already showing signs of stabilization, now could be the time to take advantage of high-quality stocks trading at a discount. Companies with strong fundamental and technical pillars and bullish analyst ratings are worth looking at, particularly Meta Platforms Inc (NASDAQ: META), once such stock. 

For investors looking to position themselves for future growth, this dip provides an attractive entry point. By focusing on a stock like Meta with strong long-term prospects, investors can benefit as the market rebounds and oversold stocks rapidly recover their lost ground. Considering Meta has already gained nearly 20% since last month's low, it's a particularly strong candidate to recover all its losses soon and, indeed, start printing fresh all-time highs. 

Why Meta's Fundamentals Make It a Top Pick in Tech

There are a couple of reasons supporting this thesis. The first is the company's strong fundamental performance, seen in its Q2 earnings released two weeks ago. Across almost every metric, Meta delivered a resounding beat on analyst expectations, with year-over-year revenue growth of 22% in particular standing out as a bright spot. At just over $39 billion, it was the company's second-highest print ever and its most profitable. 

The best bit is that with a price-to-earnings ratio of just 26, it's very hard to call Meta overvalued on that basis. It's perhaps no surprise that their shares are on track to be among the first to fully recover their losses from the past month, which bodes very well for their potential over the coming months. 

Several analysts have picked up on this theme in recent weeks, all of whom have come out with bullish comments, stances, and updates on Meta's prospects. Piper Sandler, for example, reiterated their Overweight rating on Meta shares at the start of the month while giving them a fresh price target of $575. Oppenheimer did the same, only with a price target of $615, while JPMorgan Chase & Co. went with $610 and Wells Fargo with $647. 

Meta's Path to New Highs: A Strong Case for Investment

Considering Meta shares recently lost nearly 20% in just a few weeks, these are some incredibly bullish calls. The stock closed below $530 on Wednesday evening, which means these analysts are all calling for potential upsides of between 10-25%, which isn't bad for a $1.3 trillion stock. More importantly, all those refreshed price targets would have Meta stock trading well above its previous all-time high. 

Investors considering getting involved should look for shares to continue gaining into the weekend, along with a similar trend across the broader market. Getting back up to July's record of around $542 will be a big milestone, as will the first close above it. Assuming no further surprises in the near term, there's every reason to think that would be enough to confirm Meta's upward trend is back on, and the path is clear to $600 a share and beyond.

Source MarketBeat