Back to top

Image: Bigstock

Why Twilio (TWLO) Dipped More Than Broader Market Today

Read MoreHide Full Article

In the latest close session, Twilio (TWLO - Free Report) was down 2.2% at $108.10. This change lagged the S&P 500's 0.16% loss on the day. On the other hand, the Dow registered a gain of 0.44%, and the technology-centric Nasdaq decreased by 0.76%.

Shares of the company have appreciated by 5.79% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.34%, and the S&P 500's gain of 1.14%.

Market participants will be closely following the financial results of Twilio in its upcoming release. The company is expected to report EPS of $1.05, up 2.94% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.25 billion, indicating a 10.4% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $4.5 per share and a revenue of $4.92 billion, demonstrating changes of +22.62% and +10.38%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Twilio. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.01% higher within the past month. Right now, Twilio possesses a Zacks Rank of #3 (Hold).

Investors should also note Twilio's current valuation metrics, including its Forward P/E ratio of 24.57. This denotes a discount relative to the industry average Forward P/E of 28.74.

It is also worth noting that TWLO currently has a PEG ratio of 1.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.99 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 24% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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:


Twilio Inc. (TWLO) - free report >>

Published in