Twilio (TWLO) ended the recent trading session at $95.07, demonstrating a +1.65% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.74%. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 1.26%.
Heading into today, shares of the company had lost 8.14% over the past month, lagging the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77% in that time.
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 May 1, 2025. On that day, Twilio is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 15%. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 8.54% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.20 per share and revenue of $4.78 billion, which would represent changes of +14.44% and +7.18%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Twilio. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 2.95% fall in the Zacks Consensus EPS estimate. Twilio currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Twilio is currently trading at a Forward P/E ratio of 22.28. Its industry sports an average Forward P/E of 25.94, so one might conclude that Twilio is trading at a discount comparatively.
One should further note that TWLO currently holds a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.13 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 36% 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.
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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