Investors will be hoping for strength from Twitter, Inc. (NYSE:TWTR) as it approaches its next earnings release

Investors will be hoping for strength from Twitter, Inc. (NYSE:TWTR) as it approaches its next earnings release

Investors will be hoping for strength from Twitter, Inc. (NYSE:TWTR) as it approaches its next earnings release

Twitter (TWTR) closed the most recent trading day at $36.11, moving -0.92% from the previous trading session. This change lagged the S&P 500’s daily gain of 2.14%. Elsewhere, the Dow gained 2.06%, while the tech-heavy Nasdaq added 2.65%.

Coming into today, shares of the short messaging service had lost 14.42% in the past month. In that same time, the Computer and Technology sector lost 10.97%, while the S&P 500 lost 6.63%.

Investors will be hoping for strength from TWTR as it approaches its next earnings release. The company is expected to report EPS of $0.18, up 5.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $828.49 million, up 16.6% from the prior-year quarter.

TWTR’s full-year Zacks Consensus Estimates are calling for earnings of $1.03 per share and revenue of $3.53 billion. These results would represent year-over-year changes of +19.77% and +15.97%, respectively.

Investors might also notice recent changes to analyst estimates for TWTR. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TWTR is currently a Zacks Rank #2 (Buy).

Digging into valuation, TWTR currently has a Forward P/E ratio of 33.49. This valuation marks a discount compared to its industry’s average Forward P/E of 54.3.

Meanwhile, TWTR’s PEG ratio is currently 1.43. 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. The Internet – Software was holding an average PEG ratio of 2.63 at yesterday’s closing price.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 39.30.

The projected lower bound is: 33.02.

The projected closing price is: 36.16.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 28.3664. This is not an overbought or oversold reading. The last signal was a buy 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 45.52. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 19 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -148.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 18 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 1.670 at 36.100. Volume was 11% above average (neutral) and Bollinger Bands were 19% narrower than normal.

Open High Low Close Volume___
35.250 36.145 34.980 36.100 3,648,064

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 36.89 36.49 32.76
Volatility: 55 54 60
Volume: 2,812,200 3,057,197 3,914,793

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TWITTER INC is currently 10.2% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TWTR.N and have had this outlook for the last 11 periods.

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