Twitter closed at $44.07 in the latest trading session, marking a -0.63% move from the prior day. This move lagged the S&P 500's daily gain of 1.64%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today's trading, shares of the short messaging service had lost 14.89% over the past month. This has lagged the Computer and Technology sector's loss of 3.69% and the S&P 500's loss of 0.83% in that time.
Investors will be hoping for strength from Twitter as it approaches its next earnings release. The company is expected to report EPS of $0.33, down 13.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.57 billion, up 21.7% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.14 per share and revenue of $5.09 billion, which would represent changes of +116.09% and +36.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Twitter. Recent revisions tend to reflect the latest near-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 165% lower. Twitter currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Twitter currently has a Forward P/E ratio of 316.79. This valuation marks a premium compared to its industry's average Forward P/E of 60.49.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% 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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Twitter (TWTR) Stock Sinks As Market Gains: What You Should Know
Twitter closed at $44.07 in the latest trading session, marking a -0.63% move from the prior day. This move lagged the S&P 500's daily gain of 1.64%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today's trading, shares of the short messaging service had lost 14.89% over the past month. This has lagged the Computer and Technology sector's loss of 3.69% and the S&P 500's loss of 0.83% in that time.
Investors will be hoping for strength from Twitter as it approaches its next earnings release. The company is expected to report EPS of $0.33, down 13.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.57 billion, up 21.7% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.14 per share and revenue of $5.09 billion, which would represent changes of +116.09% and +36.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Twitter. Recent revisions tend to reflect the latest near-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 165% lower. Twitter currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Twitter currently has a Forward P/E ratio of 316.79. This valuation marks a premium compared to its industry's average Forward P/E of 60.49.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% 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.