U.S. markets close in 4 hours 11 minutes
  • S&P 500

    +11.32 (+0.31%)
  • Dow 30

    +31.02 (+0.11%)
  • Nasdaq

    +79.51 (+0.74%)
  • Russell 2000

    +20.72 (+1.25%)
  • Crude Oil

    +1.76 (+2.29%)
  • Gold

    +8.60 (+0.53%)
  • Silver

    +0.09 (+0.49%)

    +0.0018 (+0.18%)
  • 10-Yr Bond

    +0.0810 (+2.09%)

    +0.0090 (+0.84%)

    -0.0600 (-0.04%)

    +1,055.30 (+5.54%)
  • CMC Crypto 200

    -0.27 (-0.06%)
  • FTSE 100

    -31.02 (-0.44%)
  • Nikkei 225

    +140.32 (+0.53%)

Twitter (TWTR) Dips More Than Broader Markets: What You Should Know

·3 min read

Twitter (TWTR) closed the most recent trading day at $38.75, moving -1.45% from the previous trading session. This change lagged the S&P 500's 0.78% loss on the day. Meanwhile, the Dow lost 0.88%, and the Nasdaq, a tech-heavy index, lost 0.19%.

Prior to today's trading, shares of the short messaging service had lost 4.05% over the past month. This has was narrower than the Computer and Technology sector's loss of 4.58% and lagged the S&P 500's loss of 3.4% in that time.

Investors will be hoping for strength from Twitter as it approaches its next earnings release. In that report, analysts expect Twitter to post earnings of $0.02 per share. This would mark year-over-year growth of 103.7%. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 2.99% from the prior-year quarter.

TWTR's full-year Zacks Consensus Estimates are calling for earnings of $1.24 per share and revenue of $5.42 billion. These results would represent year-over-year changes of +520% and +6.66%, respectively.

Investors should also note any recent changes to analyst estimates for Twitter. These revisions help to show the ever-changing nature of near-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Twitter is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, Twitter is currently trading at a Forward P/E ratio of 31.84. For comparison, its industry has an average Forward P/E of 41.75, which means Twitter is trading at a discount to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 46% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Twitter, Inc. (TWTR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research