Twitter (TWTR - Free Report) closed at $34.45 in the latest trading session, marking a -0.03% move from the prior day. This change was narrower than the S&P 500's 0.23% loss on the day. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the short messaging service had gained 10.2% over the past month, outpacing the Computer and Technology sector's gain of 4.13% and the S&P 500's gain of 3.16% 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 April 23, 2019. On that day, TWTR is projected to report earnings of $0.15 per share, which would represent a year-over-year decline of 6.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $774.86 million, up 16.54% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.84 per share and revenue of $3.49 billion, which would represent changes of -2.33% and +14.68%, respectively, from the prior year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 remained stagnant. TWTR is currently a Zacks Rank #3 (Hold).
Looking at its valuation, TWTR is holding a Forward P/E ratio of 40.99. For comparison, its industry has an average Forward P/E of 55.69, which means TWTR is trading at a discount to the group.
Meanwhile, TWTR's PEG ratio is currently 1.7. 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 3.21 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 54, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.