In the latest trading session, Twilio (TWLO) closed at $55.44, marking a +1.15% move from the previous day. The stock’s change was more than the S&P 500’s daily gain of 0.09%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.16%.
The company’s shares have seen a decrease of 7.18% over the last month, not keeping up with the Computer and Technology sector’s gain of 4.06% and the S&P 500’s gain of 2.83%.
Analysts and investors alike will be keeping a close eye on the performance of Twilio in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $0.71, reflecting a 31.48% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.06 billion, up 1.68% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.10 per share and a revenue of $4.35 billion, demonstrating changes of +26.53% and +4.73%, respectively, from the preceding 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 such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Twilio possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Twilio is presently trading at a Forward P/E ratio of 17.69. This indicates a discount in contrast to its industry’s Forward P/E of 29.68.
Investors should also note that TWLO has a PEG ratio of 0.54 right now. 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. The Internet – Software industry currently had an average PEG ratio of 1.63 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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