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Twilio (TWLO) closed the most recent trading day at $57.01, moving +1.75% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.88%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 1.95%.

Prior to today's trading, shares of the company had lost 1.39% over the past month. This has lagged the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11% in that time.

The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. It is anticipated that the company will report an EPS of $0.71, marking a 31.48% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.06 billion, up 1.68% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.10 per share and a revenue of $4.35 billion, signifying shifts of +26.53% and +4.73%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Twilio possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Twilio is at present trading with a Forward P/E ratio of 18.08. Its industry sports an average Forward P/E of 29.49, so one might conclude that Twilio is trading at a discount comparatively.

Meanwhile, TWLO's PEG ratio is currently 0.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.67.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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