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Twilio Inc. (TWLO) Dips More Than Broader Markets: What You Should Know

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Twilio Inc. (TWLO - Free Report) closed the most recent trading day at $142.58, moving -1.94% from the previous trading session. This change lagged the S&P 500's 0.34% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.43%.

Prior to today's trading, shares of the company had gained 3.33% over the past month. This has lagged the Computer and Technology sector's gain of 6.28% and the S&P 500's gain of 4.46% 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 $0.02 per share. This would mark a year-over-year decline of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $263.53 million, up 78.36% 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 +69.55%, respectively.

Investors should also note any recent changes to analyst estimates for TWLO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. TWLO currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TWLO has a Forward P/E ratio of 1311.88 right now. This valuation marks a premium compared to its industry's average Forward P/E of 65.74.

Investors should also note that TWLO has a PEG ratio of 76.85 right now. 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 was holding an average PEG ratio of 3.5 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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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