In the latest close session, Twilio (TWLO) was down 1.23% at $204.08. The stock fell short of the S&P 500, which registered a gain of 0.5% for the day. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.31%.
The stock of company has risen by 4.33% in the past month, leading the Computer and Technology sector's loss of 0.42% and the S&P 500's loss of 0.23%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. On that day, Twilio is projected to report earnings of $1.31 per share, which would represent year-over-year growth of 10.08%. In the meantime, our current consensus estimate forecasts the revenue to be $1.42 billion, indicating a 15.84% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.63 per share and a revenue of $5.81 billion, indicating changes of +15.13% and +14.61%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Twilio. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Twilio presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Twilio is presently trading at a Forward P/E ratio of 36.73. Its industry sports an average Forward P/E of 18.49, so one might conclude that Twilio is trading at a premium comparatively.
Also, we should mention that TWLO has a PEG ratio of 2.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.01 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Twilio Inc. (TWLO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).