In the latest trading session, Twitter (TWTR) closed at $66.23, marking a -0.73% move from the previous day. This move lagged the S&P 500’s daily loss of 0.06%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq gained 0.76%.
Heading into today, shares of the short messaging service had lost 7.67% over the past month, lagging the Computer and Technology sector’s loss of 6.54% and the S&P 500’s gain of 0.17% in that time.
Wall Street will be looking for positivity from TWTR as it approaches its next earnings report date. In that report, analysts expect TWTR to post earnings of $0.14 per share. This would mark 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.
Any recent changes to analyst estimates for TWTR should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. TWTR is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, TWTR is holding a Forward P/E ratio of 75.55. For comparison, its industry has an average Forward P/E of 63.34, which means TWTR is trading at a premium to the group.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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