Twitter (TWTR - Free Report) closed at $31.81 in the latest trading session, marking a +1.48% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.97%. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 1.08%.
Prior to today's trading, shares of the short messaging service had lost 6.25% over the past month. This has lagged the Computer and Technology sector's loss of 2.56% and the S&P 500's loss of 3.04% in that time.
Investors will be hoping for strength from TWTR as it approaches its next earnings release, which is expected to be February 14, 2019. The company is expected to report EPS of $0.26, up 36.84% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $870.64 million, up 19.01% from the year-ago period.
It is also important to note the recent changes to analyst estimates for TWTR. Recent revisions tend to reflect the latest 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant within the past month. TWTR is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, TWTR currently has a Forward P/E ratio of 35.45. Its industry sports an average Forward P/E of 46.14, so we one might conclude that TWTR is trading at a discount comparatively.
We can also see that TWTR currently has a PEG ratio of 1.61. 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. The Internet - Software industry currently had an average PEG ratio of 2.69 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 48, which puts it in the top 19% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.