Twilio (TWLO) ended the recent trading session at $121.49, demonstrating a +1.01% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.79% for the day. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq depreciated by 0.92%.
Shares of the company have depreciated by 1.2% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.88%, and the S&P 500's gain of 5.22%.
Investors will be eagerly watching for the performance of Twilio in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.02, showcasing a 17.24% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.19 billion, up 9.48% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.49 per share and revenue of $4.81 billion, which would represent changes of +22.34% and +7.85%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Twilio. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.14% decrease. Right now, Twilio possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Twilio is currently trading at a Forward P/E ratio of 26.77. This signifies a discount in comparison to the average Forward P/E of 29.69 for its industry.
It's also important to note that TWLO currently trades at a PEG ratio of 1.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.24.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.
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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