Twitter (TWTR) closed the most recent trading day at $38.98, moving -1.39% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 2.91%. Meanwhile, the Dow lost 2.73%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Coming into today, shares of the short messaging service had lost 12.31% in the past month. In that same time, the Computer and Technology sector lost 0.39%, while the S&P 500 gained 0.84%.
Twitter will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.14, down 30% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.33 billion, up 12.12% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.66 per share and revenue of $5.89 billion, which would represent changes of +730% and +15.93%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Twitter. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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.
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. Twitter is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Twitter currently has a Forward P/E ratio of 23.89. Its industry sports an average Forward P/E of 42.83, so we one might conclude that Twitter is trading at a discount comparatively.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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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