Twitter closed the most recent trading day at $32.49, moving +1.5% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.4%, and the Nasdaq, a tech-heavy index, 0%.
Prior to today's trading, shares of the short messaging service had gained 11.88% over the past month. This has outpaced the Computer and Technology sector's loss of 5.26% and the S&P 500's loss of 1.27% 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 February 14, 2019. In that report, analysts expect TWTR to post earnings of $0.25 per share. This would mark year-over-year growth of 31.58%. Meanwhile, our latest consensus estimate is calling for revenue of $864.87 million, up 18.22% from the prior-year quarter.
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 recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Within the past 30 days, our consensus EPS projection has moved 25.27% higher. TWTR currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, TWTR is currently trading at a Forward P/E ratio of 40.6. For comparison, its industry has an average Forward P/E of 57.74, which means TWTR is trading at a discount to the group.
We can also see that TWTR currently has a PEG ratio of 1.84. 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. TWTR's industry had an average PEG ratio of 3.43 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 54, putting it in the top 21% 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.
To follow TWTR in the coming trading sessions, be sure to utilize Zacks.com.
Image: Bigstock
Twitter (TWTR) Gains As Market Dips: What You Should Know
Twitter closed the most recent trading day at $32.49, moving +1.5% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.4%, and the Nasdaq, a tech-heavy index, 0%.
Prior to today's trading, shares of the short messaging service had gained 11.88% over the past month. This has outpaced the Computer and Technology sector's loss of 5.26% and the S&P 500's loss of 1.27% 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 February 14, 2019. In that report, analysts expect TWTR to post earnings of $0.25 per share. This would mark year-over-year growth of 31.58%. Meanwhile, our latest consensus estimate is calling for revenue of $864.87 million, up 18.22% from the prior-year quarter.
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 recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Within the past 30 days, our consensus EPS projection has moved 25.27% higher. TWTR currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, TWTR is currently trading at a Forward P/E ratio of 40.6. For comparison, its industry has an average Forward P/E of 57.74, which means TWTR is trading at a discount to the group.
We can also see that TWTR currently has a PEG ratio of 1.84. 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. TWTR's industry had an average PEG ratio of 3.43 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 54, putting it in the top 21% 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.
To follow TWTR in the coming trading sessions, be sure to utilize Zacks.com.