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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 $137.49, marking a +0.46% move from the previous day. This change outpaced the S&P 500's 0.29% gain on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.22%.

Coming into today, shares of the company had gained 9.89% in the past month. In that same time, the Computer and Technology sector gained 7.66%, while the S&P 500 gained 7.86%.

Wall Street will be looking for positivity from TWLO as it approaches its next earnings report date. The company is expected to report EPS of $0.02, down 33.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $263.53 million, up 78.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.11 per share and revenue of $1.10 billion, which would represent changes of 0% and +69.55%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TWLO. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 #3 (Hold).

Digging into valuation, TWLO currently has a Forward P/E ratio of 1234.83. For comparison, its industry has an average Forward P/E of 59.14, which means TWLO is trading at a premium to the group.

Meanwhile, TWLO's PEG ratio is currently 72.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.89 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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