Twilio (TWLO) ended the recent trading session at $104.29, demonstrating a +1.91% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.48%.
Prior to today's trading, shares of the company had lost 3.1% lagged the Computer and Technology sector's gain of 7.4% and the S&P 500's gain of 2.87%.
The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.05, marking a 2.94% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.25 billion, up 10.4% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.48 per share and a revenue of $4.91 billion, demonstrating changes of +22.07% and +10.14%, respectively, from the preceding year.
Any recent changes to analyst estimates for Twilio should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Twilio is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 22.84 right now. This valuation marks a discount compared to its industry average Forward P/E of 29.71.
Also, we should mention that TWLO has a PEG ratio of 1.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.27.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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