Twilio (TWLO) closed the most recent trading day at $294.03, moving -1.56% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.52%. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 0.19%.
Coming into today, shares of the company had gained 28.75% in the past month. In that same time, the Computer and Technology sector gained 7.19%, while the S&P 500 gained 4.79%.
TWLO will be looking to display strength as it nears its next earnings release, which is expected to be October 26, 2020. On that day, TWLO is projected to report earnings of -$0.05 per share, which would represent a year-over-year decline of 266.67%. Our most recent consensus estimate is calling for quarterly revenue of $404.51 million, up 37.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.08 per share and revenue of $1.60 billion. These totals would mark changes of -50% and +40.86%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for TWLO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TWLO is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, TWLO is holding a Forward P/E ratio of 3620.61. This represents a premium compared to its industry’s average Forward P/E of 82.51.
We can also see that TWLO currently has a PEG ratio of 237.34. 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. Internet – Software stocks are, on average, holding a PEG ratio of 6.5 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 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 Report
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