Twitter (TWTR) closed at $23.02 in the latest trading session, marking a -1.29% move from the prior day. This change lagged the S&P 500's daily gain of 2.28%. Meanwhile, the Dow gained 2.24%, and the Nasdaq, a tech-heavy index, added 1.72%.
Prior to today's trading, shares of the short messaging service had lost 35.22% over the past month. This has lagged the Computer and Technology sector's loss of 12.66% and the S&P 500's loss of 16.08% in that time.
TWTR will be looking to display strength as it nears its next earnings release. In that report, analysts expect TWTR to post earnings of $0.12 per share. This would mark a year-over-year decline of 42.86%. Meanwhile, our latest consensus estimate is calling for revenue of $792.91 million, up 0.77% from the prior-year quarter.
TWTR's full-year Zacks Consensus Estimates are calling for earnings of $0.69 per share and revenue of $3.55 billion. These results would represent year-over-year changes of -70.89% and +2.71%, respectively.
Any recent changes to analyst estimates for TWTR should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 28.29% lower within the past month. TWTR is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, TWTR currently has a Forward P/E ratio of 33.85. This valuation marks a discount compared to its industry's average Forward P/E of 35.43.
Also, we should mention that TWTR has a PEG ratio of 1.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.18 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% 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.
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