Yahoo Finance Why the Market Dipped But Twilio (TWLO) Gained Today
Twilio (TWLO) closed at $53.44 in the latest trading session, marking a +0.79% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.25%. Meanwhile, the Dow experienced a rise of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.79%.
The company's stock has dropped by 11.88% in the past month, falling short of the Computer and Technology sector's gain of 8.85% and the S&P 500's gain of 3.59%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. The company is forecasted to report an EPS of $0.71, showcasing a 31.48% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.06 billion, up 1.68% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.10 per share and revenue of $4.35 billion, indicating changes of +26.53% and +4.73%, respectively, compared to the previous 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, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Twilio presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Twilio currently has a Forward P/E ratio of 17.11. This expresses a discount compared to the average Forward P/E of 29.43 of its industry.
Investors should also note that TWLO has a PEG ratio of 0.52 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.63.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Twilio Inc. (TWLO) : Free Stock Analysis Report
