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Twilio (TWLO) Increases Despite Market Slip: Here's What You Need to Know

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The most recent trading session ended with Twilio (TWLO - Free Report) standing at $106.03, reflecting a +0.54% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.09%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the company had gained 7.13% in the past month. In that same time, the Computer and Technology sector gained 3.04%, while the S&P 500 lost 0.29%.

The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. The company is predicted to post an EPS of $1, indicating a 16.28% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.16 billion, indicating a 7.56% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.64 per share and revenue of $4.41 billion, indicating changes of +48.57% and +6.28%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Twilio boasts a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Twilio is holding a Forward P/E ratio of 28.95. This indicates a discount in contrast to its industry's Forward P/E of 32.61.

We can also see that TWLO currently has a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 2.29 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 31, this industry ranks in the top 13% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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