Yahoo Finance Twitter (TWTR) Gains As Market Dips: What You Should Know
In the latest trading session, Twitter (TWTR) closed at $28.59, marking a +0.32% move from the previous day. This move outpaced the S&P 500's daily loss of 0.35%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, added 0.08%.
Coming into today, shares of the short messaging service had lost 15.88% in the past month. In that same time, the Computer and Technology sector gained 1.48%, while the S&P 500 gained 2.47%.
Investors will be hoping for strength from TWTR as it approaches its next earnings release, which is expected to be October 25, 2018. On that day, TWTR is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 40%. Our most recent consensus estimate is calling for quarterly revenue of $703.72 million, up 19.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.70 per share and revenue of $2.92 billion, which would represent changes of +59.09% and +19.63%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TWTR. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. TWTR currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TWTR currently has a Forward P/E ratio of 40.55. Its industry sports an average Forward P/E of 70.3, so we one might conclude that TWTR is trading at a discount comparatively.
Meanwhile, TWTR's PEG ratio is currently 1.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 4.05 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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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