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Twilio Inc. (TWLO) Outpaces Stock Market Gains: What You Should Know

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Twilio Inc. (TWLO - Free Report) closed the most recent trading day at $142.32, moving +1.14% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq added 1.39%.

Heading into today, shares of the company had gained 2.22% over the past month, outpacing the Computer and Technology sector's loss of 1.04% and the S&P 500's gain of 0.64% in that time.

Investors will be hoping for strength from TWLO as it approaches its next earnings release. The company is expected to report EPS of $0.02, down 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $263.58 million, up 78.4% from the year-ago period.

TWLO's full-year Zacks Consensus Estimates are calling for earnings of $0.11 per share and revenue of $1.10 billion. These results would represent year-over-year changes of 0% and +69.71%, respectively.

Any recent changes to analyst estimates for TWLO should also be noted by investors. 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.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 #3 (Hold) right now.

Valuation is also important, so investors should note that TWLO has a Forward P/E ratio of 1238.96 right now. Its industry sports an average Forward P/E of 63.5, so we one might conclude that TWLO is trading at a premium comparatively.

Also, we should mention that TWLO has a PEG ratio of 72.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.55 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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.

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


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