Twitter (TWTR - Free Report) closed the most recent trading day at $28.30, moving -0.7% from the previous trading session. This change lagged the S&P 500's 0.36% gain on the day. Meanwhile, the Dow gained 0.73%, and the Nasdaq, a tech-heavy index, lost 0.11%.
Prior to today's trading, shares of the short messaging service had lost 20.15% over the past month. This has lagged the Computer and Technology sector's loss of 0.17% and the S&P 500's gain of 0.73% in that time.
Investors will be hoping for strength from TWTR as it approaches its next earnings release, which is expected to be October 25, 2018. On that day, TWTR is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $703.72 million, up 19.35% from the year-ago period.
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. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TWTR currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TWTR currently has a Forward P/E ratio of 40.49. For comparison, its industry has an average Forward P/E of 71.73, which means TWTR is trading at a discount to the group.
Meanwhile, TWTR's PEG ratio is currently 1.84. 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. TWTR's industry had an average PEG ratio of 4.22 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 30% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.