In the latest trading session, Twitter closed at $29.55, marking a -1.07% move from the previous day. This change lagged the S&P 500's 0.03% loss on the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.04%.
Prior to today's trading, shares of the short messaging service had gained 2.22% over the past month. This has outpaced the Computer and Technology sector's loss of 4.86% and the S&P 500's loss of 3.08% in that time.
Investors will be hoping for strength from TWTR as it approaches its next earnings release, which is expected to be October 25, 2018. On that day, TWTR is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $703.72 million, up 19.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.70 per share and revenue of $2.92 billion, which would represent changes of +59.09% and +19.63%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for TWTR. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TWTR is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, TWTR is currently trading at a Forward P/E ratio of 42.5. Its industry sports an average Forward P/E of 64.89, so we one might conclude that TWTR is trading at a discount comparatively.
Investors should also note that TWTR has a PEG ratio of 1.93 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 4.08 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Twitter (TWTR) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Twitter closed at $29.55, marking a -1.07% move from the previous day. This change lagged the S&P 500's 0.03% loss on the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.04%.
Prior to today's trading, shares of the short messaging service had gained 2.22% over the past month. This has outpaced the Computer and Technology sector's loss of 4.86% and the S&P 500's loss of 3.08% in that time.
Investors will be hoping for strength from TWTR as it approaches its next earnings release, which is expected to be October 25, 2018. On that day, TWTR is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $703.72 million, up 19.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.70 per share and revenue of $2.92 billion, which would represent changes of +59.09% and +19.63%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for TWTR. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TWTR is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, TWTR is currently trading at a Forward P/E ratio of 42.5. Its industry sports an average Forward P/E of 64.89, so we one might conclude that TWTR is trading at a discount comparatively.
Investors should also note that TWTR has a PEG ratio of 1.93 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 4.08 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.