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Twilio (TWLO) closed at $111.49 in the latest trading session, marking a +0.1% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.04% for the day. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the company had gained 8.23% in the past month. In that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 1.05%.
Analysts and investors alike will be keeping a close eye on the performance of Twilio in its upcoming earnings disclosure. In that report, analysts expect Twilio to post earnings of $1 per share. This would mark year-over-year growth of 16.28%. Simultaneously, our latest consensus estimate expects the revenue to be $1.16 billion, showing a 7.56% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.64 per share and a revenue of $4.41 billion, indicating changes of +48.57% and +6.28%, respectively, from the former 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Twilio boasts a Zacks Rank of #1 (Strong Buy).
Investors should also note Twilio's current valuation metrics, including its Forward P/E ratio of 30.57. This represents a discount compared to its industry's average Forward P/E of 33.27.
One should further note that TWLO currently holds a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.4 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 250 industries.