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Why the Market Dipped But Twilio (TWLO) Gained Today
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In the latest trading session, Twilio (TWLO - Free Report) closed at $290.70, marking a +2.17% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the company had gained 27.04% in the past month. In that same time, the Computer and Technology sector gained 6.68%, while the S&P 500 gained 1.26%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. On that day, Twilio is projected to report earnings of $1.46 per share, which would represent year-over-year growth of 16.8%. Simultaneously, our latest consensus estimate expects the revenue to be $1.51 billion, showing a 16.16% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.91 per share and revenue of $5.98 billion, which would represent changes of +20.86% and +18%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Twilio. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 0.17% upward. Twilio is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 48.12 right now. This represents a premium compared to its industry average Forward P/E of 20.16.
One should further note that TWLO currently holds a PEG ratio of 3.08. 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 Internet - Software was holding an average PEG ratio of 1.14 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
View the Zacks #1 Rank List
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Why the Market Dipped But Twilio (TWLO) Gained Today
In the latest trading session, Twilio (TWLO - Free Report) closed at $290.70, marking a +2.17% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the company had gained 27.04% in the past month. In that same time, the Computer and Technology sector gained 6.68%, while the S&P 500 gained 1.26%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. On that day, Twilio is projected to report earnings of $1.46 per share, which would represent year-over-year growth of 16.8%. Simultaneously, our latest consensus estimate expects the revenue to be $1.51 billion, showing a 16.16% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.91 per share and revenue of $5.98 billion, which would represent changes of +20.86% and +18%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Twilio. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 0.17% upward. Twilio is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 48.12 right now. This represents a premium compared to its industry average Forward P/E of 20.16.
One should further note that TWLO currently holds a PEG ratio of 3.08. 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 Internet - Software was holding an average PEG ratio of 1.14 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.