Twilio (TWLO) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with Twilio (TWLO) standing at $69.03, reflecting a +0.79% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.18%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.1%.
Shares of the company have depreciated by 0.42% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.84% and the S&P 500's gain of 2.75%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. The company is forecasted to report an EPS of $0.55, showcasing a 150% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.04 billion, showing a 1.15% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for Twilio. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Twilio possesses a Zacks Rank of #3 (Hold).
Investors should also note Twilio's current valuation metrics, including its Forward P/E ratio of 29.17. This denotes a discount relative to the industry's average Forward P/E of 34.22.
It is also worth noting 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 currently had an average PEG ratio of 1.62 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 28, finds itself in the top 12% echelons of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Twilio Inc. (TWLO) : Free Stock Analysis Report
