In the latest close session, Twilio (TWLO) was up +1.3% at $132.70. The stock's performance was ahead of the S&P 500's daily gain of 0.78%. Meanwhile, the Dow experienced a rise of 1.14%, and the technology-dominated Nasdaq saw an increase of 0.61%.
The stock of company has risen by 7.71% in the past month, lagging the Computer and Technology sector's gain of 8.76% and overreaching the S&P 500's gain of 5.88%.
The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. The company is scheduled to release its earnings on August 7, 2025. It is anticipated that the company will report an EPS of $1.02, marking a 17.24% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.19 billion, showing a 9.48% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.49 per share and revenue of $4.81 billion, which would represent changes of +22.34% and +7.85%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Twilio. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Twilio possesses a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 29.16 right now. This denotes no noticeable deviation relative to the industry average Forward P/E of 29.16.
Also, we should mention that TWLO has a PEG ratio of 1.49. 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. TWLO's industry had an average PEG ratio of 2.2 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 28% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Twilio Inc. (TWLO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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