Twitter (TWTR) closed the most recent trading day at $57.01, moving -0.26% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 0.36%.
Heading into today, shares of the short messaging service had gained 6.72% over the past month, outpacing the Computer and Technology sector’s loss of 0.29% and the S&P 500’s gain of 0.75% in that time.
Investors will be hoping for strength from TWTR as it approaches its next earnings release. On that day, TWTR is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 105.04%. Meanwhile, our latest consensus estimate is calling for revenue of $1.05 billion, up 54.29% from the prior-year quarter.
TWTR’s full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $4.78 billion. These results would represent year-over-year changes of +189.66% and +28.69%, respectively.
Investors might also notice recent changes to analyst estimates for TWTR. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. TWTR is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that TWTR has a Forward P/E ratio of 73.68 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 64.88.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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