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Twilio (TWLO) Increases Yet Falls Behind Market: What Investors Need to Know

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The most recent trading session ended with Twilio (TWLO - Free Report) standing at $60.95, reflecting a +0.1% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.23%.

Shares of the company have appreciated by 7.47% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.5%.

The upcoming earnings release of Twilio will be of great interest to investors. The company is predicted to post an EPS of $0.59, indicating a 25.53% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.03 billion, reflecting a 2.31% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.64 per share and a revenue of $4.36 billion, indicating changes of +7.76% and +5%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Twilio. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Twilio presently features a Zacks Rank of #2 (Buy).

Digging into valuation, Twilio currently has a Forward P/E ratio of 23.07. This indicates a discount in contrast to its industry's Forward P/E of 28.95.

Also, we should mention that TWLO has a PEG ratio of 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.88.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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