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Here's Why Twilio (TWLO) Fell More Than Broader Market

In the latest market close, Twilio (TWLO) reached $58.74, with a -0.73% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.58%. Meanwhile, the Dow experienced a drop of 0.12%, and the technology-dominated Nasdaq saw a decrease of 1.15%.

The the stock of company has fallen by 3.93% in the past month, lagging the Computer and Technology sector's loss of 0.47% and the S&P 500's loss of 1.09%.

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 May 7, 2024. In that report, analysts expect Twilio to post earnings of $0.60 per share. This would mark year-over-year growth of 27.66%. In the meantime, our current consensus estimate forecasts the revenue to be $1.03 billion, indicating a 2.31% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.70 per share and revenue of $4.36 billion. These totals would mark changes of +10.2% and +5%, respectively, from last year.

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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, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Twilio is carrying a Zacks Rank of #2 (Buy).

Looking at its valuation, Twilio is holding a Forward P/E ratio of 21.95. This represents a discount compared to its industry's average Forward P/E of 28.22.

It is also worth noting that TWLO currently has a PEG ratio of 1.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.78 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 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.

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

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Twilio Inc. (TWLO) : Free Stock Analysis Report

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