Twitter (TWTR - Free Report) closed the most recent trading day at $30.40, moving +0.33% from the previous trading session. This change outpaced the S&P 500's 0.01% gain on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.2%.
Prior to today's trading, shares of the short messaging service had gained 4.88% over the past month. This has outpaced the Computer and Technology sector's gain of 2.57% and the S&P 500's gain of 2.67% in that time.
TWTR will be looking to display strength as it nears its next earnings release. On that day, TWTR is projected to report earnings of $0.28 per share, which would represent a year-over-year decline of 9.68%. Meanwhile, our latest consensus estimate is calling for revenue of $997.35 million, up 9.74% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.40 per share and revenue of $3.46 billion, which would represent changes of +179.07% and +13.75%, 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.65% lower. TWTR currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TWTR currently has a Forward P/E ratio of 12.63. Its industry sports an average Forward P/E of 59.59, so we one might conclude that TWTR is trading at a discount comparatively.
Investors should also note that TWTR has a PEG ratio of 0.44 right now. 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. The Internet - Software industry currently had an average PEG ratio of 2.78 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 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.
You can find more information on all of these metrics, and much more, on Zacks.com.