Twitter (TWTR) Gains As Market Dips: What You Should Know

Twitter (TWTR) closed at $33.84 in the latest trading session, marking a +0.65% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.54%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.12%.

Coming into today, shares of the short messaging service had lost 21.38% in the past month. In that same time, the Computer and Technology sector lost 13.86%, while the S&P 500 lost 7.87%.

Wall Street will be looking for positivity from Twitter as it approaches its next earnings report date. This is expected to be February 10, 2022. The company is expected to report EPS of $0.33, down 13.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.57 billion, up 21.9% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Twitter. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.

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 52.71% lower. Twitter is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that Twitter has a Forward P/E ratio of 43.52 right now. For comparison, its industry has an average Forward P/E of 43.96, which means Twitter is trading at a discount to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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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