Twilio (TWLO) Stock Sinks As Market Gains: What You Should Know
Twilio (TWLO) closed the most recent trading day at $50.49, moving -1.5% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.05%. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 1.64%.
Shares of the company have depreciated by 8.82% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.51% and the S&P 500's loss of 2.21%.
The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. The company is slated to reveal its earnings on November 8, 2023. The company is predicted to post an EPS of $0.35, indicating a 229.63% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $985.03 million, showing a 0.2% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.70 per share and revenue of $4.04 billion, indicating changes of +1233.33% and +5.67%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Twilio. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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, the Zacks Consensus EPS estimate has remained steady. Right now, Twilio possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Twilio is currently trading at a Forward P/E ratio of 30.1. Its industry sports an average Forward P/E of 34.96, so one might conclude that Twilio is trading at a discount comparatively.
Investors should also note that TWLO has a PEG ratio of 0.56 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.5.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 67, this industry ranks in the top 27% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Twilio Inc. (TWLO) : Free Stock Analysis Report
