Twilio (TWLO) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Twilio (TWLO) closed at $126.32, marking a +1.46% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.01% for the day. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 1.22%.

Shares of the company witnessed a gain of 10.18% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.06%, and the S&P 500's loss of 2.86%.

The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.26, marking a 10.53% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 14.36% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.38 per share and a revenue of $5.68 billion, signifying shifts of +10.02% and +12.14%, respectively, from the last year.

Any recent changes to analyst estimates for Twilio should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.72% fall in the Zacks Consensus EPS estimate. Currently, Twilio is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Twilio is at present trading with a Forward P/E ratio of 23.16. This signifies a premium in comparison to the average Forward P/E of 19.67 for its industry.

Meanwhile, TWLO's PEG ratio is currently 2.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TWLO's industry had an average PEG ratio of 1.09 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.

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Twilio Inc. (TWLO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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