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

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In the latest trading session, Twilio Inc. (TWLO - Free Report) closed at $101.50, marking a +1.1% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.68%.

Prior to today's trading, shares of the company had gained 17.58% over the past month. This has outpaced the Computer and Technology sector's gain of 8.09% and the S&P 500's gain of 9.43% in that time.

TWLO will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2019. In that report, analysts expect TWLO to post earnings of $0.04 per share. This would mark year-over-year growth of 233.33%. Our most recent consensus estimate is calling for quarterly revenue of $184.41 million, up 60.02% from the year-ago period.

Any recent changes to analyst estimates for TWLO should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TWLO is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, TWLO is holding a Forward P/E ratio of 640.85. This valuation marks a premium compared to its industry's average Forward P/E of 49.15.

Also, we should mention that TWLO has a PEG ratio of 71.21. 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. TWLO's industry had an average PEG ratio of 2.52 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% 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.

To follow TWLO in the coming trading sessions, be sure to utilize Zacks.com.


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