Twilio (TWLO) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, Twilio (TWLO) closed at $73.21, marking a +1.95% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.02%.
Shares of the company have depreciated by 5.29% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52%.
The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. The company is expected to report EPS of $0.57, up 159.09% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.04 billion, indicating a 1.42% growth compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Twilio. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 7% rise in the Zacks Consensus EPS estimate. Currently, Twilio is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Twilio is currently exchanging hands at a Forward P/E ratio of 30.19. This expresses a discount compared to the average Forward P/E of 35.54 of its industry.
Investors should also note that TWLO has a PEG ratio of 0.65 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.71.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Twilio Inc. (TWLO) : Free Stock Analysis Report
