Twilio (TWLO) shares rallied 20.1% in the last trading session to close at $136.23. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.7% gain over the past four weeks.

The upswing came after the company projected an improvement in its fourth-quarter 2024 performance from its earlier expectations. In its preliminary results for the fourth quarter, Twilio stated that it expects to report an 11% year-over-year increase in top-line, significantly higher than the Zacks Consensus Estimate of 7.6%. It also anticipates that non-GAAP income from operations for the fourth quarter to be above the high-end of the previously provided guidance range.

This company is expected to post quarterly earnings of $1 per share in its upcoming report, which represents a year-over-year change of +16.3%. Revenues are expected to be $1.16 billion, up 7.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Twilio, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TWLO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Twilio is a member of the Zacks Internet - Software industry. One other stock in the same industry, Rigetti Computing, Inc. (RGTI), finished the last trading session 2% lower at $13.20. RGTI has returned -12.8% over the past month.

Rigetti Computing's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.08. Compared to the company's year-ago EPS, this represents a change of +11.1%. Rigetti Computing currently boasts a Zacks Rank of #3 (Hold).

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