Twilio (TWLO) closed at $63.22 in the latest trading session, marking a +0.94% move from the prior day. The stock’s performance was ahead of the S&P 500’s daily loss of 0.19%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.36%.
The company’s stock has climbed by 6.33% in the past month, exceeding the Computer and Technology sector’s loss of 0.09% and the S&P 500’s gain of 2.06%.
The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. In that report, analysts expect Twilio to post earnings of $0.87 per share. This would mark year-over-year growth of 50%. In the meantime, our current consensus estimate forecasts the revenue to be $1.09 billion, indicating a 5.52% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.41 per share and revenue of $4.37 billion, which would represent changes of +39.18% and +5.18%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Twilio currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Twilio is presently being traded at a Forward P/E ratio of 18.36. This signifies a discount in comparison to the average Forward P/E of 32.18 for its industry.
It’s also important to note that TWLO currently trades at a PEG ratio of 0.56. 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. As of the close of trade yesterday, the Internet – Software industry held an average PEG ratio of 2.1.
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 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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