In the latest trading session, Twitter (TWTR) closed at $34.74, marking a -1.14% move from the previous day. This move lagged the S&P 500's daily gain of 0.35%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 0.7%.
Heading into today, shares of the short messaging service had gained 12.77% over the past month, outpacing the Computer and Technology sector's gain of 6.69% and the S&P 500's gain of 5.14% in that time.
Investors will be hoping for strength from TWTR as it approaches its next earnings release, which is expected to be April 23, 2019. On that day, TWTR is projected to report earnings of $0.15 per share, which would represent a year-over-year decline of 6.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $774.86 million, up 16.54% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.84 per share and revenue of $3.49 billion, which would represent changes of -2.33% and +14.68%, respectively, from the prior year.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. TWTR is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, TWTR currently has a Forward P/E ratio of 41.8. This represents a discount compared to its industry's average Forward P/E of 54.47.
It is also worth noting that TWTR currently has a PEG ratio of 1.73. 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 was holding an average PEG ratio of 3.16 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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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Twitter, Inc. (TWTR) : Free Stock Analysis Report
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