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Twilio Inc. (TWLO) Gains But Lags Market: What You Should Know

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Twilio Inc. (TWLO - Free Report) closed the most recent trading day at $145.48, moving +0.16% from the previous trading session. This change lagged the S&P 500's 0.45% gain on the day. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.75%.

Heading into today, shares of the company had gained 3.24% over the past month, lagging the Computer and Technology sector's gain of 5.19% and the S&P 500's gain of 3.84% in that time.

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. Meanwhile, our latest consensus estimate is calling for revenue of $263.53 million, up 78.36% from the prior-year quarter.

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 recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 1310.53. This valuation marks a premium compared to its industry's average Forward P/E of 63.38.

Investors should also note that TWLO has a PEG ratio of 76.77 right now. 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 3.05 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 62, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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