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Twitter (TWTR) Stock Sinks As Market Gains: What You Should Know

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Twitter (TWTR - Free Report) closed at $38.93 in the latest trading session, marking a -0.05% move from the prior day. This change lagged the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq lost 0.61%.

Coming into today, shares of the short messaging service had gained 2.99% in the past month. In that same time, the Computer and Technology sector gained 0.29%, while the S&P 500 lost 0.52%.

Investors will be hoping for strength from TWTR as it approaches its next earnings release. On that day, TWTR is projected to report earnings of $0.05 per share, which would represent a year-over-year decline of 70.59%. Our most recent consensus estimate is calling for quarterly revenue of $755.05 million, down 8.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.83 per share and revenue of $3.27 billion, which would represent changes of -135.02% and -5.46%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TWTR. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 18.23% lower within the past month. TWTR is currently a Zacks Rank #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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