Twilio (TWLO) closed the latest trading day at $105.89, indicating a -0.36% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.46%.

Heading into today, shares of the company had lost 9.96% over the past month, lagging the Computer and Technology sector's loss of 5.94% and the S&P 500's loss of 3.59% in that time.

The upcoming earnings release of Twilio will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.92, reflecting a 15% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.14 billion, indicating an 8.54% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.28 per share and revenue of $4.8 billion, indicating changes of +16.62% and +7.67%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Twilio. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Twilio holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Twilio is holding a Forward P/E ratio of 24.84. This signifies a discount in comparison to the average Forward P/E of 28.29 for its industry.

We can additionally observe that TWLO currently boasts a PEG ratio of 1.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 2.07 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 128, putting it in the top 50% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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

This article originally published on Zacks Investment Research (zacks.com).

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