Twilio (TWLO) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Twilio (TWLO) closed at $70.21, marking a -0.41% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.02%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.04%.
The company's stock has climbed by 16.53% in the past month, exceeding the Computer and Technology sector's gain of 4.44% and the S&P 500's gain of 3.77%.
The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2024. On that day, Twilio is projected to report earnings of $0.87 per share, which would represent year-over-year growth of 50%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 5.52% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $4.37 billion. These totals would mark changes of +39.18% and +5.18%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Twilio. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Twilio is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 20.7 right now. This expresses a discount compared to the average Forward P/E of 32.19 of its industry.
One should further note that TWLO currently holds a PEG ratio of 0.63. 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 was holding an average PEG ratio of 2.13 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Twilio Inc. (TWLO) : Free Stock Analysis Report