Twilio (TWLO) closed the most recent trading day at $146.10, moving -0.59% from the previous trading session. This move lagged the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.51%.

Heading into today, shares of the company had gained 35.98% over the past month, outpacing the Computer and Technology sector's loss of 0.19% and the S&P 500's gain of 1.67% in that time.

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 February 13, 2025. It is anticipated that the company will report an EPS of $1.02, marking a 18.6% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.17 billion, up 8.99% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Twilio. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 witnessed an 8.44% increase. As of now, Twilio holds a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Twilio is currently being traded at a Forward P/E ratio of 34.16. This signifies a premium in comparison to the average Forward P/E of 31.57 for its industry.

We can additionally observe that TWLO currently boasts a PEG ratio of 1.17. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Twilio Inc. (TWLO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research