In the latest trading session, Twilio (TWLO - Free Report) closed at $325.90, marking a +0.77% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the company had gained 41.39% in the past month. In that same time, the Computer and Technology sector gained 6.24%, while the S&P 500 gained 3.19%.
Investors will be hoping for strength from TWLO as it approaches its next earnings release, which is expected to be October 26, 2020. In that report, analysts expect TWLO to post earnings of -$0.05 per share. This would mark a year-over-year decline of 266.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $404.51 million, up 37.09% from the year-ago period.
TWLO's full-year Zacks Consensus Estimates are calling for earnings of $0.08 per share and revenue of $1.60 billion. These results would represent year-over-year changes of -50% and +40.86%, respectively.
Investors might also notice recent changes to analyst estimates for TWLO. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. TWLO currently has a Zacks Rank of #4 (Sell).
In terms of valuation, TWLO is currently trading at a Forward P/E ratio of 3920.24. For comparison, its industry has an average Forward P/E of 89.96, which means TWLO is trading at a premium to the group.
We can also see that TWLO currently has a PEG ratio of 256.98. 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. TWLO's industry had an average PEG ratio of 6.63 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 167, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.