Twilio (TWLO) closed the most recent trading day at $144.14, moving +1.85% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.24%.
The company's shares have seen an increase of 10.94% over the last month, surpassing the Computer and Technology sector's gain of 0.2% and the S&P 500's gain of 0.94%.
Investors will be eagerly watching for the performance of Twilio in its upcoming earnings disclosure. The company is expected to report EPS of $1.24, up 24% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.32 billion, reflecting a 10.15% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.81 per share and a revenue of $5.01 billion, representing changes of +31.06% and +12.36%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Twilio. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Twilio is currently a Zacks Rank #2 (Buy).
In terms of valuation, Twilio is presently being traded at a Forward P/E ratio of 29.44. For comparison, its industry has an average Forward P/E of 28.78, which means Twilio is trading at a premium to the group.
Also, we should mention that TWLO has a PEG ratio of 1.48. 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. The Internet - Software industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 26% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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