The latest trading session saw Twilio (TWLO) ending at $60.89, denoting a +1.47% adjustment from its last day’s close. The stock exceeded the S&P 500, which registered a gain of 1.02% for the day. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 2.03%.
Prior to today’s trading, shares of the company had lost 1.86% over the past month. This has was narrower than the Computer and Technology sector’s loss of 5.32% and the S&P 500’s loss of 3.15% in that time.
The upcoming earnings release of Twilio will be of great interest to investors. The company’s earnings report is expected on May 7, 2024. The company is forecasted to report an EPS of $0.60, showcasing a 27.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.03 billion, up 2.31% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.71 per share and a revenue of $4.37 billion, signifying shifts of +10.61% and +5.17%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Twilio. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Twilio is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Twilio is presently trading at a Forward P/E ratio of 22.18. This valuation marks a discount compared to its industry’s average Forward P/E of 28.63.
It’s also important to note that TWLO currently trades at a PEG ratio of 1.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. Internet – Software stocks are, on average, holding a PEG ratio of 1.73 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Twilio Inc. (TWLO) : Free Stock Analysis Report
