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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 $365.03, moving +1.1% from the previous trading session. This change outpaced the S&P 500's 0.35% loss on the day. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq lost 0.07%.

Heading into today, shares of the company had gained 22.13% over the past month, outpacing the Computer and Technology sector's gain of 6.18% and the S&P 500's gain of 3.21% in that time.

Wall Street will be looking for positivity from TWLO as it approaches its next earnings report date. On that day, TWLO is projected to report earnings of -$0.08 per share, which would represent a year-over-year decline of 300%. Our most recent consensus estimate is calling for quarterly revenue of $453.46 million, up 36.91% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.11 per share and revenue of $1.67 billion, which would represent changes of -31.25% and +46.95%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TWLO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TWLO currently has a Zacks Rank of #3 (Hold).

Digging into valuation, TWLO currently has a Forward P/E ratio of 3337.62. For comparison, its industry has an average Forward P/E of 80.15, which means TWLO is trading at a premium to the group.

Also, we should mention that TWLO has a PEG ratio of 333.76. 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. TWLO's industry had an average PEG ratio of 6.01 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 177, putting it in the bottom 31% 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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