Twitter (TWTR - Free Report) closed at $35.65 in the latest trading session, marking a +0.82% move from the prior day. This change outpaced the S&P 500's 0.44% loss on the day. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.26%.
Prior to today's trading, shares of the short messaging service had gained 10.78% over the past month. This has outpaced the Computer and Technology sector's gain of 4.58% and the S&P 500's gain of 3.59% in that time.
Wall Street will be looking for positivity from TWTR as it approaches its next earnings report date. This is expected to be October 25, 2018. In that report, analysts expect TWTR to post earnings of $0.14 per share. This would mark year-over-year growth of 40%. Meanwhile, our latest consensus estimate is calling for revenue of $703.72 million, up 19.35% from the prior-year quarter.
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.
Any recent changes to analyst estimates for TWTR should also be noted by investors. 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. 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. The Zacks Consensus EPS estimate has moved 1% lower within the past month. TWTR is currently a Zacks Rank #3 (Hold).
In terms of valuation, TWTR is currently trading at a Forward P/E ratio of 50.35. Its industry sports an average Forward P/E of 74.82, so we one might conclude that TWTR is trading at a discount comparatively.
We can also see that TWTR currently has a PEG ratio of 2.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 3.98 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 105, putting it in the top 41% 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.
To follow TWTR in the coming trading sessions, be sure to utilize Zacks.com.