Back to top

Image: Bigstock

Twilio (TWLO) Surpasses Market Returns: Some Facts Worth Knowing

Read MoreHide Full Article

In the latest trading session, Twilio (TWLO - Free Report) closed at $67.48, marking a +1.83% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.9%. Meanwhile, the Dow experienced a rise of 0.81%, and the technology-dominated Nasdaq saw an increase of 1.22%.

Shares of the company witnessed a gain of 8.02% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.76% and the S&P 500's gain of 3.15%.

Market participants will be closely following the financial results of Twilio in its upcoming release. The company is predicted to post an EPS of $0.87, indicating a 50% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.09 billion, up 5.52% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.41 per share and a revenue of $4.37 billion, indicating changes of +39.18% and +5.18%, 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Twilio is currently a Zacks Rank #1 (Strong Buy).

With respect to valuation, Twilio is currently being traded at a Forward P/E ratio of 19.46. This represents a discount compared to its industry's average Forward P/E of 30.01.

Investors should also note that TWLO has a PEG ratio of 0.6 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TWLO's industry had an average PEG ratio of 2.01 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 27% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Twilio Inc. (TWLO) - free report >>

Published in