Twilio (TWLO) ended the recent trading session at $232.98, demonstrating a -3.12% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.38%. Meanwhile, the Dow experienced a drop of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.29%.
The company's shares have seen an increase of 24.47% over the last month, surpassing the Computer and Technology sector's gain of 2.81% and the S&P 500's gain of 2.08%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. It is anticipated that the company will report an EPS of $1.45, marking a 16% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.51 billion, up 16.15% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.88 per share and revenue of $5.96 billion. These totals would mark changes of +20.25% and +17.71%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 10.46% increase. Twilio is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 40.87 right now. This valuation marks a premium compared to its industry average Forward P/E of 21.
Also, we should mention that TWLO has a PEG ratio of 2.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 31% 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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