Twilio Inc. (TWLO) closed at $100.50 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's 0.29% gain on the day. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.19%.
Heading into today, shares of the company had lost 7.75% over the past month, lagging the Computer and Technology sector's loss of 0.13% and the S&P 500's gain of 0.32% in that time.
Investors will be hoping for strength from TWLO as it approaches its next earnings release, which is expected to be October 30, 2019. On that day, TWLO is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 85.71%. Our most recent consensus estimate is calling for quarterly revenue of $287.64 million, up 70.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.17 per share and revenue of $1.12 billion. These totals would mark changes of +54.55% and +71.66%, respectively, from last year.
Any recent changes to analyst estimates for TWLO should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TWLO is currently a Zacks Rank #3 (Hold).
Investors should also note TWLO's current valuation metrics, including its Forward P/E ratio of 592.06. This represents a premium compared to its industry's average Forward P/E of 52.22.
Also, we should mention that TWLO has a PEG ratio of 35.9. 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 2.8 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 56, putting it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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