Twitter, Inc. (NYSE:TWTR) Outpaces Stock Market Gains
In the latest trading session, Twitter ( TWTR ) closed at $36.22, marking a +0.39% move from the previous day. This change outpaced the S&P 500’s 0.29% gain on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.22%.
Coming into today, shares of the short messaging service had gained 4.79% in the past month. In that same time, the Computer and Technology sector gained 7.66%, while the S&P 500 gained 7.86%.
Wall Street will be looking for positivity from TWTR as it approaches its nex t earnings report date. The company is expected to report EPS of $0.18, up 5.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $828.49 million, up 16.6% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.05 per share and revenue of $3.53 billion, which would represent changes of +22.09% and +15.97%, respectively, from the prior year.
Investors should also note any 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TWTR is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, TWTR currently has a Forward P/E ratio of 34.33. For comparison, its industry has an average Forward P/E of 59.14, which means TWTR is trading at a discount to the group.
Meanwhile, TWTR’s PEG ratio is currently 1.46. 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 2.89 based on yesterday’s closing prices.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 35.74.
The projected upper bound is: 38.54.
The projected lower bound is: 33.84.
The projected closing price is: 36.19.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with TWITTER INC), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 81.4493. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 50.80. 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 41 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 42. This is not a topping or bottoming area. The last signal was a buy 3 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 buy 2 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.230 at 36.250. Volume was 60% below average (consolidating) and Bollinger Bands were 22% narrower than normal.
Open High Low Close Volume___
36.000 36.350 35.610 36.250 1,186,407
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 35.48 37.20 33.13
Volatility: 30 40 58
Volume: 2,511,822 2,733,603 3,767,335
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 9.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 0 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.