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

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The latest trading session saw Twilio (TWLO - Free Report) ending at $111.06, denoting a +1.13% adjustment from its last day's close. This change outpaced the S&P 500's 0.16% gain on the day. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.

Heading into today, shares of the company had gained 1.27% over the past month, outpacing the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 2.8% in that time.

The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. The company is forecasted to report an EPS of $1, showcasing a 16.28% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.16 billion, up 7.56% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Twilio currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Twilio is presently being traded at a Forward P/E ratio of 25.54. This denotes a discount relative to the industry's average Forward P/E of 29.33.

Meanwhile, TWLO's PEG ratio is currently 0.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.12.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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