Twitter (TWTR - Free Report) closed the most recent trading day at $34.40, moving +1.12% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.64%.
Heading into today, shares of the short messaging service had gained 19.58% over the past month, outpacing the Computer and Technology sector's loss of 6.93% and the S&P 500's loss of 4.95% in that time.
TWTR will be looking to display strength as it nears its next earnings release, which is expected to be February 14, 2019. The company is expected to report EPS of $0.25, up 31.58% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $864.87 million, up 18.22% from the year-ago period.
TWTR's full-year Zacks Consensus Estimates are calling for earnings of $0.79 per share and revenue of $2.98 billion. These results would represent year-over-year changes of +79.55% and +22.12%, respectively.
It is also important to note the recent changes to analyst estimates for TWTR. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection has moved 25.27% higher. TWTR is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that TWTR has a Forward P/E ratio of 43.15 right now. Its industry sports an average Forward P/E of 62.31, so we one might conclude that TWTR is trading at a discount comparatively.
Investors should also note that TWTR has a PEG ratio of 1.96 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 3.23 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 65, putting it in the top 25% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.