Twilio (TWLO) Outpaces Stock Market Gains: What You Should Know

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Twilio (TWLO) Outpaces Stock Market Gains: What You Should Know

Twilio (TWLO) closed the most recent trading day at $136.96, moving +2.16% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.36%.

Heading into today, shares of the company had gained 5.94% over the past month, lagging the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.

Analysts and investors alike will be keeping a close eye on the performance of Twilio in its upcoming earnings disclosure. The company's earnings report is set to go public on April 30, 2026. The company's earnings per share (EPS) are projected to be $1.26, reflecting a 10.53% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.34 billion, indicating a 14.36% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.38 per share and a revenue of $5.68 billion, indicating changes of +10.02% and +12.14%, respectively, from the former year.

Any recent changes to analyst estimates for Twilio should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Twilio is carrying a Zacks Rank of #3 (Hold).

Investors should also note Twilio's current valuation metrics, including its Forward P/E ratio of 24.94. This represents a premium compared to its industry average Forward P/E of 18.83.

It's also important to note that TWLO currently trades at a PEG ratio of 2.53. 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. The Internet - Software industry currently had an average PEG ratio of 1.09 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% 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.

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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This article originally published on Zacks Investment Research (zacks.com).

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