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Twilio (TWLO) Increases Despite Market Slip: Here's What You Need to Know
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In the latest close session, Twilio (TWLO - Free Report) was up +1.38% at $211.97. The stock outperformed the S&P 500, which registered a daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Shares of the company have depreciated by 1.63% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.38%, and the S&P 500's gain of 2.14%.
The upcoming earnings release of Twilio will be of great interest to investors. The company is expected to report EPS of $1.32, up 10.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.42 billion, up 15.84% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.64 per share and revenue of $5.81 billion, indicating changes of +15.34% and +14.61%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications 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 shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has remained steady. Twilio currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Twilio is currently exchanging hands at a Forward P/E ratio of 37.08. This indicates a premium in contrast to its industry's Forward P/E of 19.77.
Investors should also note that TWLO has a PEG ratio of 2.06 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Twilio (TWLO) Increases Despite Market Slip: Here's What You Need to Know
In the latest close session, Twilio (TWLO - Free Report) was up +1.38% at $211.97. The stock outperformed the S&P 500, which registered a daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Shares of the company have depreciated by 1.63% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.38%, and the S&P 500's gain of 2.14%.
The upcoming earnings release of Twilio will be of great interest to investors. The company is expected to report EPS of $1.32, up 10.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.42 billion, up 15.84% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.64 per share and revenue of $5.81 billion, indicating changes of +15.34% and +14.61%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications 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 shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has remained steady. Twilio currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Twilio is currently exchanging hands at a Forward P/E ratio of 37.08. This indicates a premium in contrast to its industry's Forward P/E of 19.77.
Investors should also note that TWLO has a PEG ratio of 2.06 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.