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Twilio (TWLO) Stock Sinks As Market Gains: What You Should Know

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Twilio (TWLO - Free Report) closed the most recent trading day at $211.54, moving -2.89% from the previous trading session. This change lagged the S&P 500's 0.38% gain on the day. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.62%.

Coming into today, shares of the company had gained 13.05% in the past month. In that same time, the Computer and Technology sector lost 0.53%, while the S&P 500 gained 1.61%.

Investors will be eagerly watching for the performance of Twilio in its upcoming earnings disclosure. On that day, Twilio is projected to report earnings of $1.32 per share, which would represent year-over-year growth of 10.92%. In the meantime, our current consensus estimate forecasts the revenue to be $1.42 billion, indicating a 15.84% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.64 per share and a revenue of $5.81 billion, signifying shifts of +15.34% and +14.61%, respectively, from the last year.

Any recent changes to analyst estimates for Twilio should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Twilio currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Twilio currently has a Forward P/E ratio of 38.63. This denotes a premium relative to the industry average Forward P/E of 19.89.

It's also important to note that TWLO currently trades at a PEG ratio of 2.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.06 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 92, this industry ranks in the top 38% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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