The most recent trading session ended with Twilio (TWLO) standing at $86.86, reflecting a +1.32% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.81% gain on the day. On the other hand, the Dow registered a gain of 1.56%, and the technology-centric Nasdaq increased by 2.06%.

Prior to today's trading, shares of the company had lost 9.66% over the past month. This has lagged the Computer and Technology sector's loss of 7.27% and the S&P 500's loss of 6.14% in that time.

Market participants will be closely following the financial results of Twilio in its upcoming release. The company plans to announce its earnings on May 1, 2025. On that day, Twilio is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 15%. Simultaneously, our latest consensus estimate expects the revenue to be $1.14 billion, showing an 8.54% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.21 per share and a revenue of $4.8 billion, indicating changes of +14.71% and +7.61%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Twilio. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 2.43% fall in the Zacks Consensus EPS estimate. As of now, Twilio holds a Zacks Rank of #3 (Hold).

Digging into valuation, Twilio currently has a Forward P/E ratio of 20.38. This valuation marks a discount compared to its industry's average Forward P/E of 24.57.

Investors should also note that TWLO has a PEG ratio of 1.07 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.85.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% of all 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.

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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