In the latest trading session, Twilio (TWLO) closed at $123.72, marking a -8.94% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.13%. On the other hand, the Dow registered a gain of 0.11%, and the technology-centric Nasdaq decreased by 0.72%.
Heading into today, shares of the company had lost 4.49% over the past month, lagging the Computer and Technology sector's gain of 1.88% and the S&P 500's gain of 0.78%.
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 February 12, 2026. The company is expected to report EPS of $1.24, up 24% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.32 billion, showing a 10.22% escalation compared to the year-ago quarter.
TWLO's full-year Zacks Consensus Estimates are calling for earnings of $4.81 per share and revenue of $5.02 billion. These results would represent year-over-year changes of +31.06% and 0%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Twilio is carrying a Zacks Rank of #4 (Sell).
With respect to valuation, Twilio is currently being traded at a Forward P/E ratio of 25.04. This valuation marks a premium compared to its industry average Forward P/E of 23.25.
One should further note that TWLO currently holds a PEG ratio of 1.26. 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 had an average PEG ratio of 1.38 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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