Twitter (TWTR - Free Report) closed the most recent trading day at $30.55, moving +0.03% from the previous trading session. This move lagged the S&P 500's daily gain of 0.19%. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.27%.
Heading into today, shares of the short messaging service had lost 4.6% over the past month, lagging the Computer and Technology sector's loss of 0.52% and the S&P 500's gain of 0.74% in that time.
TWTR will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2018. The company is expected to report EPS of $0.14, up 40% from the prior-year quarter. 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. TWTR is currently a Zacks Rank #3 (Hold).
Digging into valuation, TWTR currently has a Forward P/E ratio of 86.37. This valuation marks a premium compared to its industry's average Forward P/E of 52.83.
We can also see that TWTR currently has a PEG ratio of 3.92. 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 was holding an average PEG ratio of 3.43 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.