Twitter (TWTR) Dips More Than Broader Markets: What You Should Know

Twitter closed at $35.88 in the latest trading session, marking a -1.02% move from the prior day. This move lagged the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 0.39%.

Coming into today, shares of the short messaging service had gained 10.15% in the past month. In that same time, the Computer and Technology sector gained 0.38%, while the S&P 500 lost 2.56%.

TWTR will be looking to display strength as it nears its next earnings release, which is expected to be February 14, 2019. The company is expected to report EPS of $0.26, up 36.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $870.64 million, up 19.01% from the year-ago period.

TWTR's full-year Zacks Consensus Estimates are calling for earnings of $0.81 per share and revenue of $3 billion. These results would represent year-over-year changes of +84.09% and +22.58%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.29% higher within the past month. TWTR is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note TWTR's current valuation metrics, including its Forward P/E ratio of 44.85. This represents a discount compared to its industry's average Forward P/E of 55.33.

Investors should also note that TWTR has a PEG ratio of 2.03 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. The Internet - Software industry currently had an average PEG ratio of 2.95 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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