Twitter closed at $41.27 in the latest trading session, marking a -0.98% move from the prior day. This change was narrower than the S&P 500's 1.71% loss on the day. Elsewhere, the Dow lost 1.7%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the short messaging service had gained 4.57% over the past month, outpacing the Computer and Technology sector's loss of 12.12% and the S&P 500's loss of 8.68% in that time.
Twitter will be looking to display strength as it nears its next earnings release. In that report, analysts expect Twitter to post earnings of $0.02 per share. This would mark year-over-year growth of 103.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 2.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.24 per share and revenue of $5.42 billion, which would represent changes of +520% and +6.66%, respectively, from the prior year.
Any recent changes to analyst estimates for Twitter should also be noted by investors. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Twitter is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Twitter is holding a Forward P/E ratio of 33.75. For comparison, its industry has an average Forward P/E of 42.78, which means Twitter is trading at a discount to the group.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 46% 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.