Twilio (TWLO) ended the recent trading session at $71.24, demonstrating a +0.91% swing from the preceding day’s closing price. The stock outpaced the S&P 500’s daily gain of 0.22%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, added 0.76%.
Shares of the company witnessed a gain of 12.67% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.29% and the S&P 500’s gain of 1.47%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. The company is slated to reveal its earnings on October 30, 2024. In that report, analysts expect Twilio to post earnings of $0.87 per share. This would mark year-over-year growth of 50%. Simultaneously, our latest consensus estimate expects the revenue to be $1.09 billion, showing a 5.52% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.41 per share and a revenue of $4.37 billion, signifying shifts of +39.18% and +5.18%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Twilio. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Twilio possesses a Zacks Rank of #2 (Buy).
Digging into valuation, Twilio currently has a Forward P/E ratio of 20.73. Its industry sports an average Forward P/E of 31.81, so one might conclude that Twilio is trading at a discount comparatively.
It is also worth noting that TWLO currently has a PEG ratio of 0.63. 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. Internet – Software stocks are, on average, holding a PEG ratio of 2.07 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
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 Report
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