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Twilio (TWLO) Suffers a Larger Drop Than the General Market: Key Insights
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Twilio (TWLO - Free Report) closed the most recent trading day at $129.83, moving -1.65% from the previous trading session. This move lagged the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.8%, and the technology-dominated Nasdaq saw a decrease of 0.1%.
The company's stock has dropped by 1.46% in the past month, falling short of the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.26%.
The upcoming earnings release of Twilio will be of great interest to investors. The company is forecasted to report an EPS of $1.24, showcasing a 24% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 10.22% from the year-ago period.
TWLO's full-year Zacks Consensus Estimates are calling for earnings of $4.81 per share and revenue of $5.02 billion. These results would represent year-over-year changes of +31.06% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for Twilio. 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Twilio is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 24.33 right now. This valuation marks a discount compared to its industry average Forward P/E of 24.44.
Also, we should mention that TWLO has a PEG ratio of 1.22. 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 average PEG ratio for the Internet - Software industry stood at 1.5 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Twilio (TWLO) Suffers a Larger Drop Than the General Market: Key Insights
Twilio (TWLO - Free Report) closed the most recent trading day at $129.83, moving -1.65% from the previous trading session. This move lagged the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.8%, and the technology-dominated Nasdaq saw a decrease of 0.1%.
The company's stock has dropped by 1.46% in the past month, falling short of the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.26%.
The upcoming earnings release of Twilio will be of great interest to investors. The company is forecasted to report an EPS of $1.24, showcasing a 24% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 10.22% from the year-ago period.
TWLO's full-year Zacks Consensus Estimates are calling for earnings of $4.81 per share and revenue of $5.02 billion. These results would represent year-over-year changes of +31.06% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for Twilio. 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Twilio is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 24.33 right now. This valuation marks a discount compared to its industry average Forward P/E of 24.44.
Also, we should mention that TWLO has a PEG ratio of 1.22. 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 average PEG ratio for the Internet - Software industry stood at 1.5 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.