In the latest trading session, Twitter (TWTR) closed at $43.23, marking a -0.02% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.11%.
Coming into today, shares of the short messaging service had gained 2.25% in the past month. In that same time, the Computer and Technology sector gained 4.15%, while the S&P 500 gained 4.17%.
Investors will be hoping for strength from TWTR as it approaches 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%. Our most recent consensus estimate is calling for quarterly revenue of $876.26 million, up 15.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.46 per share and revenue of $3.56 billion. These totals would mark changes of +186.05% and +17.06%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for TWTR. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. TWTR is currently a Zacks Rank #3 (Hold).
Digging into valuation, TWTR currently has a Forward P/E ratio of 17.6. This valuation marks a discount compared to its industry's average Forward P/E of 57.38.
Meanwhile, TWTR's PEG ratio is currently 0.75. 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 2.88 at yesterday's closing price.
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 gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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