Twilio (TWLO) Dips More Than Broader Market: What You Should Know
In the latest trading session, Twilio (TWLO) closed at $68.49, marking a -0.51% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.34% for the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.56%.
Shares of the company have appreciated by 0.79% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 2.56%.
Analysts and investors alike will be keeping a close eye on the performance of Twilio in its upcoming earnings disclosure. In that report, analysts expect Twilio to post earnings of $0.55 per share. This would mark year-over-year growth of 150%. At the same time, our most recent consensus estimate is projecting a revenue of $1.04 billion, reflecting a 1.15% rise from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Twilio. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Twilio is currently a Zacks Rank #3 (Hold).
With respect to valuation, Twilio is currently being traded at a Forward P/E ratio of 29.32. This represents a discount compared to its industry's average Forward P/E of 32.74.
We can also see that TWLO currently has a PEG ratio of 0.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.6 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 33, this industry ranks in the top 14% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Twilio Inc. (TWLO) : Free Stock Analysis Report
