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

TWLO

Twilio (TWLO - Free Report) closed the most recent trading day at $63.89, moving +1.38% from the previous trading session. This change outpaced the S&P 500's 0.12% gain on the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 4.09%.

Prior to today's trading, shares of the company had gained 32.73% over the past month. This has outpaced the Computer and Technology sector's gain of 9.32% and the S&P 500's gain of 3.98% in that time.

Wall Street will be looking for positivity from Twilio as it approaches its next earnings report date. The company is expected to report EPS of $0.30, up 372.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $984.47 million, up 4.36% from the year-ago period.

TWLO's full-year Zacks Consensus Estimates are calling for earnings of $1.37 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +1013.33% and +5.86%, respectively.

Any recent changes to analyst estimates for Twilio should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 has moved 18.73% higher within the past month. Twilio is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Twilio is holding a Forward P/E ratio of 45.97. This represents a premium compared to its industry's average Forward P/E of 41.35.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.

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

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