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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 the most recent trading day at $130.79, moving +0.31% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq added 0.07%.

Heading into today, shares of the company had gained 15.82% over the past month, outpacing the Computer and Technology sector's gain of 4.76% and the S&P 500's gain of 2.14% in that time.

Investors will be hoping for strength from TWLO as it approaches its next earnings release. In that report, analysts expect TWLO to post earnings of $0.01 per share. This would mark year-over-year growth of 125%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $223.95 million, up 73.44% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.11 per share and revenue of $1.08 billion, which would represent changes of 0% and +65.61%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TWLO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 1.89% lower within the past month. TWLO is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note TWLO's current valuation metrics, including its Forward P/E ratio of 1185.27. This valuation marks a premium compared to its industry's average Forward P/E of 57.55.

It is also worth noting that TWLO currently has a PEG ratio of 65.2. 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 was holding an average PEG ratio of 3.44 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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