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Twilio Inc. (TWLO) Gains As Market Dips: What You Should Know

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Twilio Inc. (TWLO - Free Report) closed at $92.70 in the latest trading session, marking a +0.94% move from the prior day. This move outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.16%.

Heading into today, shares of the company had gained 10.2% over the past month, outpacing the Computer and Technology sector's loss of 4.01% and the S&P 500's loss of 4.99% in that time.

Wall Street will be looking for positivity from TWLO as it approaches its next earnings report date. This is expected to be February 12, 2019. On that day, TWLO is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 233.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $184.34 million, up 59.96% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.11 per share and revenue of $625.73 million. These totals would mark changes of +157.89% and +56.82%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for TWLO. These recent revisions tend to reflect the evolving nature of short-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 shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 1.07% higher within the past month. TWLO is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, TWLO currently has a Forward P/E ratio of 847.75. For comparison, its industry has an average Forward P/E of 56.49, which means TWLO is trading at a premium to the group.

We can also see that TWLO currently has a PEG ratio of 94.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.95 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 26, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TWLO in the coming trading sessions, be sure to utilize Zacks.com.


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