Twilio (TWLO) Stock Sinks As Market Gains: What You Should Know
Twilio (TWLO) ended the recent trading session at $72.50, demonstrating a -0.41% swing from the preceding day's closing price. This change lagged the S&P 500's 0.53% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.19%.
The company's shares have seen a decrease of 5.93% over the last month, not keeping up with the Computer and Technology sector's gain of 5.21% and the S&P 500's gain of 2.48%.
The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. The company is scheduled to release its earnings 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. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, up 1.42% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Twilio. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.33% higher. Twilio is currently a Zacks Rank #2 (Buy).
Looking at valuation, Twilio is presently trading at a Forward P/E ratio of 30.55. This valuation marks a discount compared to its industry's average Forward P/E of 34.62.
Also, we should mention that TWLO has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.78 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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
