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

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Twilio (TWLO - Free Report) ended the recent trading session at $108.69, demonstrating a +0.68% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.12%. Meanwhile, the Dow experienced a rise of 0.52%, and the technology-dominated Nasdaq saw a decrease of 0.23%.

Coming into today, shares of the company had lost 3.25% in the past month. In that same time, the Computer and Technology sector lost 3.73%, while the S&P 500 lost 3.45%.

The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. The company is predicted to post an EPS of $1, indicating a 16.28% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.16 billion, showing a 7.56% escalation compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for Twilio. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Twilio is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Twilio is presently being traded at a Forward P/E ratio of 24.74. Its industry sports an average Forward P/E of 27.61, so one might conclude that Twilio is trading at a discount comparatively.

It is also worth noting that TWLO currently has a PEG ratio of 0.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 2.05 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons 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.

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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