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

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Twilio (TWLO - Free Report) closed the most recent trading day at $64.06, moving +0.69% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.14%.

Twilio will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.20, up 281.82% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $984.47 million, up 4.36% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.38 per share and revenue of $4.05 billion. These totals would mark changes of +1020% and +5.86%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Twilio. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Twilio is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Twilio has a Forward P/E ratio of 46.07 right now. For comparison, its industry has an average Forward P/E of 41.81, which means Twilio is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% 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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