Twitter (TWTR) Stock Sinks As Market Gains: What You Should Know
Twitter (TWTR) closed the most recent trading day at $58, moving -0.14% from the previous trading session. This change lagged the S&P 500's daily gain of 0.08%.
Coming into today, shares of the short messaging service had lost 10.77% in the past month. In that same time, the Computer and Technology sector lost 1.97%, while the S&P 500 gained 0.41%.
Investors will be hoping for strength from TWTR as it approaches its next earnings release. The company is expected to report EPS of $0.08, up 105.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 54.29% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.79 per share and revenue of $4.78 billion. These totals would mark changes of +190.8% and +28.69%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for TWTR. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 27.93% lower within the past month. TWTR currently has a Zacks Rank of #4 (Sell).
Digging into valuation, TWTR currently has a Forward P/E ratio of 73.23. This represents a premium compared to its industry's average Forward P/E of 70.66.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% 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.
To follow TWTR in the coming trading sessions, be sure to utilize Zacks.com.
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