Twilio (TWLO) Ascends But Remains Behind Market: Some Facts to Note

Stock Performance - Twilio's stock closed at $73 36, marking a +1 16% increase from the previous day, lagging behind the S&P 500's gain of 1 23%, the Dow's rise of 1 06%, and the Nasdaq's increase of 1 7% [1] - Over the past month, Twilio's stock dropped by 4 84%, underperforming the Computer and Technology sector's gain of 1 98% and the S&P 500's gain of 0 94% [1] Earnings and Revenue Expectations - Twilio's upcoming earnings report is expected on February 14, 2024, with a predicted EPS of$ 0 57, indicating a 159 09% growth compared to the same quarter last year [1] - The Zacks Consensus Estimate for revenue projects net sales of $1 04 billion, up 1 42% from the year-ago period [1] Analyst Estimates and Zacks Rank - Recent adjustments to analyst estimates for Twilio reflect changing near-term business trends, with positive revisions indicating a favorable business outlook [2] - The Zacks Rank system, which includes estimate changes, has shown a 9 33% rise in the Zacks Consensus EPS estimate over the past month, with Twilio currently holding a Zacks Rank of 2 (Buy) [2] - The Zacks Rank system has a strong track record, with 1 stocks generating an average annual return of +25% since 1988 [2] Valuation Metrics - Twilio's Forward P/E ratio is 30 44, representing a discount compared to the industry average of 33 82 [3] - The company's PEG ratio is 0 65, significantly lower than the industry average of 1 73, indicating a favorable valuation relative to expected earnings growth [3] Industry Ranking - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 53, placing it in the top 22% of over 250 industries [3] - Industries in the top 50% of the Zacks Industry Rank outperform the bottom half by a factor of 2 to 1 [3]