Twilio (TWLO) closed the most recent trading day at $66.27, moving -0.18% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.17%. At the same time, the Dow lost 0.44%, and the tech-heavy Nasdaq lost 0.04%.
The company’s shares have seen an increase of 9.12% over the last month, surpassing the Computer and Technology sector’s gain of 1.41% and the S&P 500’s gain of 1.25%.
Investors will be eagerly watching for the performance of Twilio in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.87, indicating a 50% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.09 billion, reflecting a 5.52% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.41 per share and a revenue of $4.37 billion, indicating changes of +39.18% and +5.18%, respectively, from the former year.
Any recent changes to analyst estimates for Twilio should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Twilio is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Twilio currently has a Forward P/E ratio of 19.5. This represents a discount compared to its industry’s average Forward P/E of 30.39.
We can additionally observe that TWLO currently boasts a PEG ratio of 0.6. 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. The average PEG ratio for the Internet – Software industry stood at 2.01 at the close of the market yesterday.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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