Twitter (TWTR - Free Report) closed at $42.65 in the latest trading session, marking a +0.38% move from the prior day. This change outpaced the S&P 500's 0.06% gain on the day. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.13%.
Coming into today, shares of the short messaging service had gained 0.97% in the past month. In that same time, the Computer and Technology sector lost 4.41%, while the S&P 500 lost 2.95%.
TWTR will be looking to display strength as it nears its next earnings release. On that day, TWTR is projected to report earnings of $0.20 per share, which would represent a year-over-year decline of 4.76%. Our most recent consensus estimate is calling for quarterly revenue of $876.26 million, up 15.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.46 per share and revenue of $3.56 billion, which would represent changes of +186.05% and +17.06%, respectively, from the prior year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. TWTR is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, TWTR currently has a Forward P/E ratio of 17.3. For comparison, its industry has an average Forward P/E of 49.09, which means TWTR is trading at a discount to the group.
Investors should also note that TWTR has a PEG ratio of 0.74 right now. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.93 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 99, which puts it in the top 39% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.