Twilio (TWLO) Ascends But Remains Behind Market: Some Facts to Note
Twilio (TWLO) closed at $73.36 in the latest trading session, marking a +1.16% move from the prior day. This move lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow experienced a rise of 1.06%, and the technology-dominated Nasdaq saw an increase of 1.7%.
The company's stock has dropped by 4.84% in the past month, falling short of the Computer and Technology sector's gain of 1.98% and the S&P 500's gain of 0.94%.
The upcoming earnings release of Twilio will be of great interest to investors. The company's earnings report is expected on February 14, 2024. The company is predicted to post an EPS of $0.57, indicating a 159.09% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, up 1.42% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Twilio. 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 9.33% rise in the Zacks Consensus EPS estimate. As of now, Twilio holds a Zacks Rank of #2 (Buy).
In the context of valuation, Twilio is at present trading with a Forward P/E ratio of 30.44. This expresses a discount compared to the average Forward P/E of 33.82 of its industry.
We can also see that TWLO currently has a PEG ratio of 0.65. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 1.73 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Twilio Inc. (TWLO) : Free Stock Analysis Report
