Twitter (TWTR) Stock Sinks As Market Gains: What You Should Know
Twitter (TWTR) closed the most recent trading day at $43.20, moving -0.12% from the previous trading session. This change lagged the S&P 500's 0.29% gain on the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.3%.
Prior to today's trading, shares of the short messaging service had gained 6.4% over the past month. This has outpaced the Computer and Technology sector's gain of 3.47% and the S&P 500's gain of 2.99% in that time.
TWTR will be looking to display strength as it nears its next earnings release. In that report, analysts expect TWTR to post earnings of $0.20 per share. This would mark a year-over-year decline of 4.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $876.26 million, up 15.58% from the year-ago period.
TWTR's full-year Zacks Consensus Estimates are calling for earnings of $2.46 per share and revenue of $3.56 billion. These results would represent year-over-year changes of +186.05% and +17.06%, respectively.
Investors should also note any recent changes to analyst estimates for TWTR. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TWTR is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note TWTR's current valuation metrics, including its Forward P/E ratio of 17.61. This represents a discount compared to its industry's average Forward P/E of 55.07.
It is also worth noting that TWTR currently has a PEG ratio of 0.75. 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. The Internet - Software industry currently had an average PEG ratio of 2.84 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.
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