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Twilio (TWLO) Rises Higher Than Market: Key Facts

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In the latest trading session, Twilio (TWLO - Free Report) closed at $218.60, marking a +1.44% move from the previous day. This change outpaced the S&P 500's 0.81% gain on the day. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 1.3%.

Prior to today's trading, shares of the company had gained 4.06% outpaced the Computer and Technology sector's loss of 1.59% and the S&P 500's gain of 1.13%.

Analysts and investors alike will be keeping a close eye on the performance of Twilio in its upcoming earnings disclosure. The company is expected to report EPS of $1.32, up 10.92% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.42 billion, up 15.84% from the prior-year quarter.

TWLO's full-year Zacks Consensus Estimates are calling for earnings of $5.64 per share and revenue of $5.81 billion. These results would represent year-over-year changes of +15.34% and +14.61%, respectively.

Investors should also note any recent changes to analyst estimates for Twilio. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Twilio currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Twilio currently has a Forward P/E ratio of 38.22. This expresses a premium compared to the average Forward P/E of 19.31 of its industry.

Meanwhile, TWLO's PEG ratio is currently 2.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TWLO's industry had an average PEG ratio of 1.05 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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