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Twitter (TWTR) Gains But Lags Market: What You Should Know

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Twitter (TWTR - Free Report) closed the most recent trading day at $28.68, moving +0.07% from the previous trading session. This move lagged the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.38%.

Coming into today, shares of the short messaging service had lost 12.44% in the past month. In that same time, the Computer and Technology sector lost 5.08%, while the S&P 500 lost 7.55%.

Investors will be hoping for strength from TWTR as it approaches its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect TWTR to post earnings of $0.26 per share. This would mark year-over-year growth of 36.84%. Our most recent consensus estimate is calling for quarterly revenue of $870.64 million, up 19.01% from the year-ago period.

TWTR's full-year Zacks Consensus Estimates are calling for earnings of $0.80 per share and revenue of $3 billion. These results would represent year-over-year changes of +81.82% and +22.88%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.82% higher within the past month. TWTR is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, TWTR is currently trading at a Forward P/E ratio of 35.83. This represents a discount compared to its industry's average Forward P/E of 44.99.

Investors should also note that TWTR has a PEG ratio of 1.62 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 2.75 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 10% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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