In the latest close session, Twilio (TWLO) was down 1.23% at $105.19. This change lagged the S&P 500's daily gain of 0.44%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 0.7%.
Coming into today, shares of the company had gained 0.11% in the past month. In that same time, the Computer and Technology sector gained 9.59%, while the S&P 500 gained 4.03%.
The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. In that report, analysts expect Twilio to post earnings of $1.05 per share. This would mark year-over-year growth of 2.94%. Alongside, our most recent consensus estimate is anticipating revenue of $1.25 billion, indicating a 10.4% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.48 per share and revenue of $4.91 billion, indicating changes of +22.07% and +10.14%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Twilio. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. As of now, Twilio holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Twilio is currently exchanging hands at a Forward P/E ratio of 23.77. This signifies a discount in comparison to the average Forward P/E of 32.15 for its industry.
Meanwhile, TWLO's PEG ratio is currently 1.25. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.34 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 71, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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