We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Twilio (TWLO) Gained But Lagged the Market Today
Read MoreHide Full Article
Twilio (TWLO - Free Report) closed the latest trading day at $57.40, indicating a +0.07% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 0.28%.
Prior to today's trading, shares of the company had gained 0.58% over the past month. This has lagged the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08% in that time.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. The company's earnings per share (EPS) are projected to be $0.71, reflecting a 31.48% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.06 billion, up 1.68% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.10 per share and a revenue of $4.35 billion, indicating changes of +26.53% and +4.73%, respectively, from the former year.
Investors should also note any recent changes 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Twilio is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 18.51 right now. This expresses a discount compared to the average Forward P/E of 29.89 of its industry.
It's also important to note that TWLO currently trades at a PEG ratio of 0.56. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.74.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons 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.
To follow TWLO in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Twilio (TWLO) Gained But Lagged the Market Today
Twilio (TWLO - Free Report) closed the latest trading day at $57.40, indicating a +0.07% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 0.28%.
Prior to today's trading, shares of the company had gained 0.58% over the past month. This has lagged the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08% in that time.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. The company's earnings per share (EPS) are projected to be $0.71, reflecting a 31.48% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.06 billion, up 1.68% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.10 per share and a revenue of $4.35 billion, indicating changes of +26.53% and +4.73%, respectively, from the former year.
Investors should also note any recent changes 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Twilio is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 18.51 right now. This expresses a discount compared to the average Forward P/E of 29.89 of its industry.
It's also important to note that TWLO currently trades at a PEG ratio of 0.56. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.74.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons 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.
To follow TWLO in the coming trading sessions, be sure to utilize Zacks.com.