Twitter (TWTR) closed at $67.93 in the latest trading session, marking a -0.47% move from the prior day. This change lagged the S&P 500’s daily gain of 0.33%.
Coming into today, shares of the short messaging service had gained 17.51% in the past month. In that same time, the Computer and Technology sector gained 6.03%, while the S&P 500 gained 1.74%.
Wall Street will be looking for positivity from TWTR as it approaches its next earnings report date. The company is expected to report EPS of $0.07, up 105.04% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.06 billion, up 54.5% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.77 per share and revenue of $4.79 billion, which would represent changes of +188.51% and +28.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for TWTR. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 1.76% lower within the past month. TWTR is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, TWTR is currently trading at a Forward P/E ratio of 88.43. For comparison, its industry has an average Forward P/E of 78.37, which means TWTR is trading at a premium to the group.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 18% 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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