In the latest trading session, Twitter (TWTR - Free Report) closed at $39.70, marking a -1.37% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.79%. Meanwhile, the Dow lost 1.86%, and the Nasdaq, a tech-heavy index, lost 1.56%.
Heading into today, shares of the short messaging service had lost 4.08% over the past month, lagging the Computer and Technology sector's gain of 1.04% and the S&P 500's gain of 0.72% 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 $0.20 per share. This would mark a year-over-year decline of 4.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $876.26 million, up 15.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.46 per share and revenue of $3.56 billion. These totals would mark changes of +186.05% and +17.06%, respectively, from last 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 a Zacks Rank #3 (Hold).
In terms of valuation, TWTR is currently trading at a Forward P/E ratio of 16.39. Its industry sports an average Forward P/E of 54.55, so we one might conclude that TWTR is trading at a discount comparatively.
Also, we should mention that TWTR has a PEG ratio of 0.7. 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 2.55 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.