Twitter (TWTR) Gains But Lags Market: What You Should Know
Twitter (TWTR) closed the most recent trading day at $66.95, moving +0.3% from the previous trading session. This move lagged the S&P 500's daily gain of 1.95%. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq added 1.55%.
Coming into today, shares of the short messaging service had gained 18.12% in the past month. In that same time, the Computer and Technology sector lost 6.69%, while the S&P 500 lost 2.45%.
Wall Street will be looking for positivity from TWTR as it approaches its next earnings report date. On that day, TWTR is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 27.27%. Meanwhile, our latest consensus estimate is calling for revenue of $1.02 billion, up 26.39% from the prior-year quarter.
TWTR's full-year Zacks Consensus Estimates are calling for earnings of $0.88 per share and revenue of $4.79 billion. These results would represent year-over-year changes of +201.15% and +28.94%, respectively.
Investors might also notice recent changes to analyst estimates for TWTR. These recent revisions tend to reflect the evolving nature of short-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. 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 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 25.38% lower within the past month. TWTR is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note TWTR's current valuation metrics, including its Forward P/E ratio of 75.59. Its industry sports an average Forward P/E of 73.39, so we one might conclude that TWTR is trading at a premium comparatively.
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 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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