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

Asbury Automotive (ABG) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.·Zacks

Twitter (TWTR) closed the most recent trading day at $32.39, moving +0.09% from the previous trading session. This change outpaced the S&P 500's 0.66% loss on the day. At the same time, the Dow lost 0.99%, and the tech-heavy Nasdaq lost 1.63%.

Prior to today's trading, shares of the short messaging service had gained 9.99% over the past month. This has outpaced the Computer and Technology sector's loss of 10.48% and the S&P 500's loss of 8.1% in that time.

Investors will be hoping for strength from TWTR as it approaches its next earnings release, which is expected to be February 14, 2019. The company is expected to report EPS of $0.23, up 21.05% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $843.02 million, up 15.24% from the year-ago period.

TWTR's full-year Zacks Consensus Estimates are calling for earnings of $0.71 per share and revenue of $2.92 billion. These results would represent year-over-year changes of +61.36% and +19.61%, respectively.

It is also important to note the recent changes to analyst estimates for TWTR. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. TWTR currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TWTR has a Forward P/E ratio of 45.44 right now. This represents a discount compared to its industry's average Forward P/E of 60.16.

Also, we should mention that TWTR has a PEG ratio of 2.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 3.19 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.

To follow TWTR in the coming trading sessions, be sure to utilize Zacks.com.


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