Twilio (TWLO) closed at $129.61 in the latest trading session, marking a -2.23% move from the prior day. This change lagged the S&P 500's daily gain of 2.51%. At the same time, the Dow added 2.85%, and the tech-heavy Nasdaq gained 2.8%.
The company's shares have seen an increase of 5.92% over the last month, surpassing the Computer and Technology sector's loss of 0.84% and the S&P 500's loss of 1.66%.
Market participants will be closely following the financial results of Twilio in its upcoming release. The company's earnings per share (EPS) are projected to be $1.26, reflecting a 10.53% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.34 billion, indicating a 14.36% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.38 per share and a revenue of $5.68 billion, representing changes of +10.02% and +12.14%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Twilio. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Twilio holds a Zacks Rank of #3 (Hold).
With respect to valuation, Twilio is currently being traded at a Forward P/E ratio of 24.66. This represents a premium compared to its industry average Forward P/E of 19.14.
One should further note that TWLO currently holds a PEG ratio of 2.5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.06.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 140, positioning it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
This article originally published on Zacks Investment Research (zacks.com).