Twilio (TWLO) Increases Yet Falls Behind Market: What Investors Need to Know
Twilio (TWLO) ended the recent trading session at $72.52, demonstrating a +0.71% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.88% for the day. On the other hand, the Dow registered a gain of 0.54%, and the technology-centric Nasdaq increased by 1.35%.
The company's shares have seen a decrease of 3.92% over the last month, not keeping up with the Computer and Technology sector's gain of 0.72% and the S&P 500's gain of 0.64%.
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's earnings per share (EPS) are projected to be $0.57, reflecting a 159.09% increase from the same 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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Twilio. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.33% higher within the past month. Twilio is currently a Zacks Rank #2 (Buy).
Digging into valuation, Twilio currently has a Forward P/E ratio of 30.22. Its industry sports an average Forward P/E of 33.59, so one might conclude that Twilio is trading at a discount comparatively.
It's also important to note that TWLO currently trades at 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.72.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 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.
To follow TWLO in the coming trading sessions, be sure to utilize Zacks.com.
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Twilio Inc. (TWLO) : Free Stock Analysis Report
