In the latest trading session, Twilio Inc. (TWLO) closed at $110.29, marking a -0.67% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.6%.
Heading into today, shares of the company had gained 1.19% over the past month, outpacing the Computer and Technology sector's loss of 1.05% and the S&P 500's loss of 1.87% in that time.
Investors will be hoping for strength from TWLO as it approaches its next earnings release. The company is expected to report EPS of $0.01, down 85.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $287.64 million, up 70.3% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.17 per share and revenue of $1.12 billion, which would represent changes of +54.55% and +71.66%, 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. 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. 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. Within the past 30 days, our consensus EPS projection has moved 10.39% lower. TWLO is currently a Zacks Rank #3 (Hold).
Digging into valuation, TWLO currently has a Forward P/E ratio of 653.12. Its industry sports an average Forward P/E of 55.24, so we one might conclude that TWLO is trading at a premium comparatively.
Investors should also note that TWLO has a PEG ratio of 39.6 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. The Internet - Software industry currently had an average PEG ratio of 2.67 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 83, putting it in the top 33% 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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Twilio Inc. (TWLO) : Free Stock Analysis Report
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