Twitter, Inc. (NYSE:TWTR) Outpaces Stock Market Gains
In the latest trading session, Twitter (TWTR) closed at $36.44, marking a +0.8% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.09%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.62%.
Coming into today, shares of the short messaging service had lost 5.61% in the past month. In that same time, the Computer and Technology sector gained 0.35%, while the S&P 500 gained 2.08%.
Wall Street will be looking for positivity from TWTR as it approaches its next earnings report date. On that day, TWTR is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 5.88%. 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 $1.05 per share and revenue of $3.53 billion. These results would represent year-over-year changes of +22.09% and +15.97%, respectively.
It is also important to note the recent changes to analyst estimates for TWTR. These revisions help to show the ever-changing nature of near-term business trends. 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 remained stagnant. TWTR is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, TWTR is holding a Forward P/E ratio of 35.17. Its industry sports an average Forward P/E of 62.28, so we one might conclude that TWTR is trading at a discount comparatively.
Also, we should mention that TWTR has a PEG ratio of 1.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Internet – Software was holding an average PEG ratio of 2.59 at yesterday’s closing price.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 39.66.
The projected lower bound is: 33.30.
The projected closing price is: 36.48.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 20.0975. This is not an overbought or oversold reading. The last signal was a sell 4 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 47.01. 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 28 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 -29. This is not a topping or bottoming area. The last signal was a buy 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.290 at 36.440. Volume was 40% below average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
36.260 36.680 36.110 36.440 1,899,492
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 36.82 37.14 32.90
Volatility: 41 55 60
Volume: 2,453,002 2,969,676 3,854,502
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.
TWITTER INC is currently 10.8% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 20 periods.
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