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Twilio (TWLO) Stock Drops Despite Market Gains: Important Facts to Note

Twilio (TWLO) closed the latest trading day at $61.33, indicating a -0.84% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw an increase of 1.68%.

The the stock of company has fallen by 0.72% in the past month, lagging the Computer and Technology sector's gain of 0.95% and the S&P 500's gain of 0.8%.

Analysts and investors alike will be keeping a close eye on the performance of Twilio in its upcoming earnings disclosure. The company's earnings report is set to go public on May 7, 2024. It is anticipated that the company will report an EPS of $0.59, marking a 25.53% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.03 billion, showing a 2.31% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.64 per share and revenue of $4.36 billion. These totals would mark changes of +7.76% and +5%, respectively, from last year.

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Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Twilio is holding a Zacks Rank of #2 (Buy) right now.

Looking at valuation, Twilio is presently trading at a Forward P/E ratio of 23.44. This denotes a discount relative to the industry's average Forward P/E of 29.42.

Also, we should mention that TWLO has a PEG ratio of 1.2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.86 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 35, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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

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