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

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Twilio Inc. (TWLO - Free Report) closed at $237 in the latest trading session, marking a -0.55% move from the prior day. This move lagged the S&P 500's daily gain of 1.05%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 1.72%.

Prior to today's trading, shares of the company had lost 2.92% over the past month. This has was narrower than the Computer and Technology sector's loss of 4.28% and the S&P 500's loss of 3.29% 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 -$0.06, down 300% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $403.72 million, up 36.82% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.08 per share and revenue of $1.60 billion. These totals would mark changes of -50% and +40.66%, respectively, from last year.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TWLO is currently a Zacks Rank #3 (Hold).

Investors should also note TWLO's current valuation metrics, including its Forward P/E ratio of 3158.19. This represents a premium compared to its industry's average Forward P/E of 76.77.

We can also see that TWLO currently has a PEG ratio of 207.03. 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. The Internet - Software was holding an average PEG ratio of 5.71 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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