Twilio (TWLO) closed at $122.16 in the latest trading session, marking a -3.17% move from the prior day. This change lagged the S&P 500's 0.32% gain on the day. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%.
The company's shares have seen an increase of 8.46% over the last month, surpassing the Computer and Technology sector's gain of 7.22% and the S&P 500's gain of 4.51%.
Analysts and investors alike will be keeping a close eye on the performance of Twilio in its upcoming earnings disclosure. The company's earnings report is set to go public on August 7, 2025. On that day, Twilio is projected to report earnings of $1.02 per share, which would represent year-over-year growth of 17.24%. Alongside, our most recent consensus estimate is anticipating revenue of $1.19 billion, indicating a 9.48% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.49 per share and revenue of $4.81 billion, indicating changes of +22.34% and +7.85%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Twilio holds a Zacks Rank of #4 (Sell).
Looking at its valuation, Twilio is holding a Forward P/E ratio of 28.08. This signifies no noticeable deviation in comparison to the average Forward P/E of 28.08 for its industry.
We can also see that TWLO currently has a PEG ratio of 1.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.1 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Twilio Inc. (TWLO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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