In the latest trading session, Twilio (TWLO) closed at $136.24, marking a -1.53% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. On the other hand, the Dow registered a gain of 1.23%, and the technology-centric Nasdaq increased by 0.69%.
The company's stock has climbed by 8.67% in the past month, exceeding the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.
The upcoming earnings release of Twilio will be of great interest to investors. The company is forecasted to report an EPS of $1.24, showcasing a 24% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.32 billion, indicating a 10.22% upward movement from the same 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 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Twilio. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Twilio is currently a Zacks Rank #4 (Sell).
Digging into valuation, Twilio currently has a Forward P/E ratio of 25.49. This denotes a premium relative to the industry average Forward P/E of 24.2.
It is also worth noting that TWLO currently has a PEG ratio of 1.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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