In the latest market close, Twilio (TWLO) reached $100.41, with a +1.45% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 0.85%, while the tech-heavy Nasdaq appreciated by 0.31%.

Heading into today, shares of the company had lost 20.93% over the past month, lagging the Computer and Technology sector's loss of 11.22% and the S&P 500's loss of 7.69% in that time.

The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.92, marking a 15% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 8.54% from the year-ago period.

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 note any recent changes to analyst estimates for Twilio. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.85% higher. Right now, Twilio possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Twilio is currently trading at a Forward P/E ratio of 23.14. This denotes a discount relative to the industry's average Forward P/E of 27.15.

We can also see that TWLO currently has a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.04 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 120, placing it within the top 48% of over 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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