In the latest trading session, Twilio Inc. (TWLO - Free Report) closed at $225.91, marking a +0.67% move from the previous day. The stock lagged the S&P 500's daily gain of 1.27%. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 1.87%.
Heading into today, shares of the company had lost 8.02% over the past month, lagging the Computer and Technology sector's gain of 1.37% and the S&P 500's gain of 0.37% in that time.
TWLO will be looking to display strength as it nears its next earnings release. In that report, analysts expect TWLO to post earnings of -$0.06 per share. This would mark a year-over-year decline of 300%. Our most recent consensus estimate is calling for quarterly revenue of $403.72 million, up 36.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.08 per share and revenue of $1.60 billion. These totals would mark changes of -50% and +40.66%, respectively, from last year.
Any recent changes to analyst estimates for TWLO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TWLO currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TWLO currently has a Forward P/E ratio of 2974.11. For comparison, its industry has an average Forward P/E of 81.49, which means TWLO is trading at a premium to the group.
Also, we should mention that TWLO has a PEG ratio of 194.96. 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 currently had an average PEG ratio of 4.84 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 173, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.