In the latest trading session, Twilio Inc. (TWLO) closed at $98.36, marking a +0.79% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.05%.
Heading into today, shares of the company had lost 5.25% over the past month, lagging the Computer and Technology sector's gain of 2.54% and the S&P 500's gain of 2.48% in that time.
Wall Street will be looking for positivity from TWLO as it approaches its next earnings report date. The company is expected to report EPS of $0.02, down 50% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $312.07 million, up 52.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.13 per share and revenue of $1.12 billion, which would represent changes of +18.18% and +71.8%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TWLO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently a Zacks Rank #4 (Sell).
Looking at its valuation, TWLO is holding a Forward P/E ratio of 745.91. This represents a premium compared to its industry's average Forward P/E of 60.53.
Investors should also note that TWLO has a PEG ratio of 58.23 right now. 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. TWLO's industry had an average PEG ratio of 2.79 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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