Twilio (TWLO) closed the most recent trading day at $111.85, moving +2.15% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq depreciated by 1.51%.
The stock of company has fallen by 21.44% in the past month, lagging the Computer and Technology sector's loss of 0.27% and the S&P 500's gain of 0.93%.
Market participants will be closely following the financial results of Twilio in its upcoming release. The company plans to announce its earnings on February 12, 2026. The company's earnings per share (EPS) are projected to be $1.24, reflecting a 24% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 10.22% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.81 per share and revenue of $5.02 billion, which would represent changes of +31.06% and 0%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Twilio presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Twilio is currently being traded at a Forward P/E ratio of 20.18. This indicates a discount in contrast to its industry's Forward P/E of 20.67.
Also, we should mention that TWLO has a PEG ratio of 1.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.17.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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