We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Twilio (TWLO) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
Twilio (TWLO - Free Report) closed the latest trading day at $69.71, indicating a +0.85% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.82%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.95%.
Prior to today's trading, shares of the company had lost 5.12% over the past month. This has lagged the Computer and Technology sector's gain of 10.9% and the S&P 500's gain of 5.59% in that time.
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 is predicted to post an EPS of $0.57, indicating a 159.09% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, up 1.53% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 9.33% upward. Twilio is currently a Zacks Rank #2 (Buy).
Investors should also note Twilio's current valuation metrics, including its Forward P/E ratio of 29.01. For comparison, its industry has an average Forward P/E of 31.54, which means Twilio is trading at a discount to the group.
It is also worth noting that TWLO currently has a PEG ratio of 0.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.68.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 38% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Twilio (TWLO) Outperforms Broader Market: What You Need to Know
Twilio (TWLO - Free Report) closed the latest trading day at $69.71, indicating a +0.85% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.82%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.95%.
Prior to today's trading, shares of the company had lost 5.12% over the past month. This has lagged the Computer and Technology sector's gain of 10.9% and the S&P 500's gain of 5.59% in that time.
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 is predicted to post an EPS of $0.57, indicating a 159.09% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, up 1.53% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 9.33% upward. Twilio is currently a Zacks Rank #2 (Buy).
Investors should also note Twilio's current valuation metrics, including its Forward P/E ratio of 29.01. For comparison, its industry has an average Forward P/E of 31.54, which means Twilio is trading at a discount to the group.
It is also worth noting that TWLO currently has a PEG ratio of 0.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.68.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 38% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.