Twitter (TWTR) closed the most recent trading day at $42.43, moving -0.16% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.24%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.58%.
Coming into today, shares of the short messaging service had gained 1.97% in the past month. In that same time, the Computer and Technology sector gained 5.16%, while the S&P 500 gained 4.96%.
TWTR will be looking to display strength as it nears its next earnings release. 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.
TWTR's full-year Zacks Consensus Estimates are calling for earnings of $2.46 per share and revenue of $3.56 billion. These results would represent year-over-year changes of +186.05% and +17.06%, respectively.
It is also important to note the recent changes to analyst estimates for TWTR. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TWTR currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, TWTR is holding a Forward P/E ratio of 17.3. For comparison, its industry has an average Forward P/E of 55.34, which means TWTR is trading at a discount to the group.
It is also worth noting that TWTR currently has a PEG ratio of 0.74. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.69 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% 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.
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