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

Zacks Equity Research
·2-min read

Twitter (TWTR) closed at $44.15 in the latest trading session, marking a +0.71% move from the prior day. This move lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.51%, while the tech-heavy Nasdaq added 1.87%.

Heading into today, shares of the short messaging service had gained 8.54% over the past month, outpacing the Computer and Technology sector's loss of 4.69% and the S&P 500's loss of 4.08% in that time.

TWTR will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.04, down 76.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $756.74 million, down 8.13% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.92 per share and revenue of $3.27 billion, which would represent changes of -138.82% and -5.37%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TWTR. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 has moved 18.23% lower. TWTR is currently a Zacks Rank #4 (Sell).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Twitter, Inc. (TWTR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.