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Twilio (TWLO) closed the latest trading day at $109.07, indicating a +0.92% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.22% for the day. Meanwhile, the Dow experienced a drop of 0.36%, and the technology-dominated Nasdaq saw a decrease of 0.16%.
Coming into today, shares of the company had lost 1.7% in the past month. In that same time, the Computer and Technology sector gained 1.86%, while the S&P 500 lost 2.36%.
Investors will be eagerly watching for the performance of Twilio in its upcoming earnings disclosure. On that day, Twilio is projected to report earnings of $1 per share, which would represent year-over-year growth of 16.28%. Alongside, our most recent consensus estimate is anticipating revenue of $1.16 billion, indicating a 7.56% upward movement from the same quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Twilio. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Twilio is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Twilio is currently being traded at a Forward P/E ratio of 25.14. This signifies a discount in comparison to the average Forward P/E of 27.8 for its industry.
Investors should also note that TWLO has a PEG ratio of 0.6 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 2.03 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 26, positioning it in the top 11% 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.