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Twilio (TWLO) Beats Stock Market Upswing: What Investors Need to Know

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The most recent trading session ended with Twilio (TWLO - Free Report) standing at $61.52, reflecting a +0.94% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.91%. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 1.51%.

The the stock of company has by 0% in the past month, leading the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.2%.

Investors will be eagerly watching for the performance of Twilio in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 7, 2024. The company is expected to report EPS of $0.60, up 27.66% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, up 2.4% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.71 per share and revenue of $4.38 billion, which would represent changes of +10.61% and +5.37%, respectively, from the prior year.

Any recent changes to analyst estimates for Twilio should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Twilio is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Twilio is currently trading at a Forward P/E ratio of 22.53. This denotes a discount relative to the industry's average Forward P/E of 29.48.

It's also important to note that TWLO currently trades at a PEG ratio of 1.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.64 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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