Twitter (TWTR - Free Report) closed the most recent trading day at $30.06, moving -0.2% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the short messaging service had lost 2.21% over the past month. This has lagged the Computer and Technology sector's gain of 2.89% and the S&P 500's gain of 1.81% in that time.
Wall Street will be looking for positivity from TWTR as it approaches its next earnings report date. In that report, analysts expect TWTR to post earnings of $0.05 per share. This would mark a year-over-year decline of 40.4%. Our most recent consensus estimate is calling for quarterly revenue of $773.26 million, up 16.3% from the year-ago period.
TWTR's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $3.48 billion. These results would represent year-over-year changes of -16.53% and +14.43%, respectively.
Any recent changes to analyst estimates for TWTR should also be noted by investors. 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. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 12.28% lower. TWTR is currently a Zacks Rank #3 (Hold).
Investors should also note TWTR's current valuation metrics, including its Forward P/E ratio of 36.07. For comparison, its industry has an average Forward P/E of 53, which means TWTR is trading at a discount to the group.
It is also worth noting that TWTR currently has a PEG ratio of 1.49. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.87 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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.