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Twilio Inc. (TWLO) Gains But Lags Market: What You Should Know

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Twilio Inc. (TWLO - Free Report) closed at $224.27 in the latest trading session, marking a +0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.91%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.59%.

Prior to today's trading, shares of the company had gained 6.74% over the past month. This has lagged the Computer and Technology sector's gain of 8.52% and outpaced the S&P 500's gain of 5.26% in that time.

Wall Street will be looking for positivity from TWLO as it approaches its next earnings report date. In that report, analysts expect TWLO to post earnings of -$0.09 per share. This would mark a year-over-year decline of 400%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $367.57 million, up 33.64% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.11 per share and revenue of $1.51 billion, which would represent changes of -168.75% and +33.44%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TWLO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TWLO is holding a Zacks Rank of #2 (Buy) right now.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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