Twilio Inc. (TWLO - Free Report) closed at $97.52 in the latest trading session, marking a +0.56% move from the prior day. The stock lagged the S&P 500's daily gain of 0.97%. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 1.08%.
Prior to today's trading, shares of the company had gained 5.6% over the past month. This has outpaced the Computer and Technology sector's loss of 2.56% and the S&P 500's loss of 3.04% in that time.
Investors will be hoping for strength from TWLO as it approaches its next earnings release, which is expected to be February 12, 2019. The company is expected to report EPS of $0.04, up 233.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $184.34 million, up 59.96% from the year-ago period.
It is also important to note the recent changes to analyst estimates for TWLO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TWLO is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, TWLO currently has a Forward P/E ratio of 619.02. Its industry sports an average Forward P/E of 46.14, so we one might conclude that TWLO is trading at a premium comparatively.
We can also see that TWLO currently has a PEG ratio of 68.78. 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. The Internet - Software industry currently had an average PEG ratio of 2.69 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.