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

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Twilio Inc. (TWLO - Free Report) closed the most recent trading day at $248.80, moving +1.75% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.48%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq lost 0.29%.

Heading into today, shares of the company had lost 9.36% over the past month, lagging the Computer and Technology sector's loss of 5.56% and the S&P 500's loss of 4.3% in that time.

Wall Street will be looking for positivity from TWLO as it approaches its next earnings report date. In that report, analysts expect TWLO to post earnings of -$0.06 per share. This would mark a year-over-year decline of 300%. Meanwhile, our latest consensus estimate is calling for revenue of $403.72 million, up 36.82% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.08 per share and revenue of $1.60 billion, which would represent changes of -50% and +40.66%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TWLO. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TWLO is currently a Zacks Rank #2 (Buy).

In terms of valuation, TWLO is currently trading at a Forward P/E ratio of 3240.63. Its industry sports an average Forward P/E of 79.53, so we one might conclude that TWLO is trading at a premium comparatively.

Meanwhile, TWLO's PEG ratio is currently 212.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 6.36 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 185, putting it in the bottom 28% 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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