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Twitter (TWTR) Gains But Lags Market: What You Should Know

Twitter (TWTR) closed the most recent trading day at $50.28, moving +0.08% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 0.19%.

Coming into today, shares of the short messaging service had gained 10.83% in the past month. In that same time, the Computer and Technology sector gained 7.19%, while the S&P 500 gained 4.79%.

Investors will be hoping for strength from TWTR as it approaches its next earnings release, which is expected to be October 29, 2020. The company is expected to report EPS of $0.06, down 64.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $765.29 million, down 7.09% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.91 per share and revenue of $3.30 billion. These totals would mark changes of -138.4% and -4.52%, respectively, from last year.

Any recent changes to analyst estimates for TWTR should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.46% lower. TWTR is currently sporting a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 36% 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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