Twilio (TWLO) closed the most recent trading day at $209.28, moving +1.43% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.22%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.66%.
Coming into today, shares of the company had lost 10.02% in the past month. In that same time, the Computer and Technology sector lost 2.58%, while the S&P 500 lost 1.21%.
Investors will be eagerly watching for the performance of Twilio in its upcoming earnings disclosure. The company is expected to report EPS of $1.32, up 10.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.42 billion, up 15.84% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.64 per share and revenue of $5.81 billion, indicating changes of +15.34% and +14.61%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Twilio should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained unchanged. Currently, Twilio is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Twilio is presently being traded at a Forward P/E ratio of 36.59. This expresses a premium compared to the average Forward P/E of 19.05 of its industry.
One should further note that TWLO currently holds a PEG ratio of 2.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 1.06 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Twilio Inc. (TWLO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).