Twilio (TWLO) Stock Falls Amid Market Uptick: What Investors Need to Know

TWLO

Twilio (TWLO - Free Report) closed at $77.17 in the latest trading session, marking a -0.28% move from the prior day. This change lagged the S&P 500's daily gain of 0.04%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.03%.

The company's stock has climbed by 17.03% in the past month, exceeding the Computer and Technology sector's gain of 4.9% and the S&P 500's gain of 5.28%.

The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. The company is expected to report EPS of $0.55, up 150% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.04 billion, indicating a 1.15% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.15 per share and a revenue of $4.11 billion, representing changes of +1533.33% and +7.53%, respectively, from 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Twilio possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Twilio is currently exchanging hands at a Forward P/E ratio of 36.04. Its industry sports an average Forward P/E of 39.88, so one might conclude that Twilio is trading at a discount comparatively.

Investors should also note that TWLO has a PEG ratio of 0.8 right now. 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 1.81 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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