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

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In the latest close session, Twilio (TWLO - Free Report) was up +2.04% at $141.74. The stock exceeded the S&P 500, which registered a gain of 0.88% for the day. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 1.31%.

The company's shares have seen an increase of 16.84% over the last month, surpassing the Computer and Technology sector's gain of 1.49% and the S&P 500's gain of 2.48%.

Market participants will be closely following the financial results of Twilio in its upcoming release. The company is forecasted to report an EPS of $1.24, showcasing a 24% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.32 billion, indicating a 10.15% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.81 per share and a revenue of $5.01 billion, signifying shifts of +31.06% and +12.36%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Twilio holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Twilio is holding a Forward P/E ratio of 28.89. This signifies a discount in comparison to the average Forward P/E of 29.31 for its industry.

We can also see that TWLO currently has a PEG ratio of 1.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.83.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 23% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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