Twitter (TWTR) closed the most recent trading day at $32.87, moving +1.83% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.34%.
Heading into today, shares of the short messaging service had gained 6.15% over the past month, outpacing the Computer and Technology sector's gain of 1.96% and the S&P 500's gain of 0.64% in that time.
TWTR will be looking to display strength as it nears its next earnings release, which is expected to be April 23, 2019. On that day, TWTR is projected to report earnings of $0.14 per share, which would represent a year-over-year decline of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $773.26 million, up 16.3% from the year-ago period.
TWTR's full-year Zacks Consensus Estimates are calling for earnings of $0.84 per share and revenue of $3.48 billion. These results would represent year-over-year changes of -2.33% and +14.43%, respectively.
Investors might also notice recent changes to analyst estimates for TWTR. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TWTR currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TWTR currently has a Forward P/E ratio of 38.66. This represents a discount compared to its industry's average Forward P/E of 55.6.
Investors should also note that TWTR has a PEG ratio of 1.6 right now. 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. TWTR's industry had an average PEG ratio of 3.08 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 57, which puts it in the top 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.