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Twilio (TWLO) Outperforms Broader Market: What You Need to Know

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Twilio (TWLO - Free Report) closed at $300.91 in the latest trading session, marking a +2.15% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.66%. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 1.05%.

Shares of the company witnessed a gain of 26.44% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.36%, and the S&P 500's gain of 0.55%.

Analysts and investors alike will be keeping a close eye on the performance of Twilio in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.46, showcasing a 16.8% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.51 billion, indicating a 16.16% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.91 per share and a revenue of $5.98 billion, indicating changes of +20.86% and +18%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Twilio. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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, 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. Right now, Twilio possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Twilio is at present trading with a Forward P/E ratio of 49.82. This represents a premium compared to its industry average Forward P/E of 19.59.

Meanwhile, TWLO's PEG ratio is currently 3.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TWLO's industry had an average PEG ratio of 1.17 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 86, which puts it in the top 35% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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