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Twitter (TWTR) Stock Sinks As Market Gains: What You Should Know

·3 min read

In the latest trading session, Twitter (TWTR) closed at $38.62, marking a -0.34% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the short messaging service had lost 5.49% over the past month, lagging the Computer and Technology sector's loss of 5.16% and the S&P 500's loss of 4.13% in that time.

Wall Street will be looking for positivity from Twitter as it approaches its next earnings report date. The company is expected to report EPS of $0.02, up 103.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 2.99% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.24 per share and revenue of $5.42 billion. These totals would mark changes of +520% and +6.66%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Twitter. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Twitter currently has a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Twitter has a Forward P/E ratio of 31.38 right now. This valuation marks a discount compared to its industry's average Forward P/E of 42.99.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 45% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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