Twitter (TWTR) closed the most recent trading day at $41.85, moving +1.58% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.66%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the short messaging service had lost 7.27% over the past month, outpacing the Computer and Technology sector’s loss of 8.24% and lagging the S&P 500’s loss of 3.79% in that time.
Wall Street will be looking for positivity from Twitter as it approaches its next earnings report date. The company is expected to report EPS of $0.02, up 103.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 2.99% from the year-ago period.
TWTR’s full-year Zacks Consensus Estimates are calling for earnings of $1.24 per share and revenue of $5.42 billion. These results would represent year-over-year changes of +520% and +6.66%, respectively.
It is also important to note the 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. Within the past 30 days, our consensus EPS projection remained stagnant. Twitter is currently a Zacks Rank #4 (Sell).
Investors should also note Twitter’s current valuation metrics, including its Forward P/E ratio of 33.36. Its industry sports an average Forward P/E of 42.33, 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 industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Twitter, Inc. (TWTR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research