Twilio Inc. (TWLO) closed at $143.03 in the latest trading session, marking a +1.66% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the company had gained 7.33% over the past month, outpacing the Computer and Technology sector's loss of 1.9% and the S&P 500's gain of 0.33% in that time.
Investors will be hoping for strength from TWLO as it approaches its next earnings release. On that day, TWLO is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $263.58 million, up 78.4% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.11 per share and revenue of $1.10 billion, which would represent changes of 0% and +69.71%, respectively, from the prior year.
Any recent changes to analyst estimates for TWLO should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TWLO is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, TWLO is holding a Forward P/E ratio of 1226.95. For comparison, its industry has an average Forward P/E of 59.02, which means TWLO is trading at a premium to the group.
We can also see that TWLO currently has a PEG ratio of 71.88. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.59 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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