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

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Twilio (TWLO - Free Report) closed at $314.61 in the latest trading session, marking a -0.82% move from the prior day. This change lagged the S&P 500's 0.18% loss on the day.

Heading into today, shares of the company had gained 3.64% over the past month, outpacing the Computer and Technology sector's gain of 2.1% and the S&P 500's gain of 0.04% in that time.

TWLO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.14, down 255.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $597.74 million, up 49.12% from the prior-year quarter.

TWLO's full-year Zacks Consensus Estimates are calling for earnings of -$0.18 per share and revenue of $2.53 billion. These results would represent year-over-year changes of -178.26% and +43.35%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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 1.29% higher within the past month. TWLO currently has a Zacks Rank of #4 (Sell).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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