Back to top

Image: Bigstock

Twilio (TWLO) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, Twilio (TWLO - Free Report) closed at $386.56, marking a +0.3% move from the previous day. This move lagged the S&P 500's daily gain of 0.58%.

Coming into today, shares of the company had gained 15.96% in the past month. In that same time, the Computer and Technology sector gained 7.24%, while the S&P 500 gained 2.17%.

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, the Zacks Consensus Estimate for revenue is projecting net sales of $597.74 million, up 49.12% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.18 per share and revenue of $2.53 billion. These totals would mark changes of -178.26% and +43.36%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for TWLO. These revisions help to show the ever-changing nature of 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. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. TWLO is currently a Zacks Rank #4 (Sell).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Twilio Inc. (TWLO) - free report >>

Published in