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

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In the latest trading session, Twilio Inc. (TWLO - Free Report) closed at $362.88, marking a -0.11% move from the previous day. This move lagged the S&P 500's daily gain of 0.35%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, added 0.26%.

Prior to today's trading, shares of the company had gained 18.91% over the past month. This has outpaced the Computer and Technology sector's gain of 6.75% and the S&P 500's gain of 3.27% in that time.

Investors will be hoping for strength from TWLO as it approaches its next earnings release. On that day, TWLO is projected to report earnings of -$0.08 per share, which would represent a year-over-year decline of 300%. Our most recent consensus estimate is calling for quarterly revenue of $453.46 million, up 36.91% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.11 per share and revenue of $1.67 billion, which would represent changes of -31.25% and +47.04%, respectively, from the prior year.

Any recent changes to analyst estimates for TWLO should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. TWLO currently has a Zacks Rank of #3 (Hold).

Digging into valuation, TWLO currently has a Forward P/E ratio of 3205.41. For comparison, its industry has an average Forward P/E of 87.05, which means TWLO is trading at a premium to the group.

Investors should also note that TWLO has a PEG ratio of 320.54 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. Internet - Software stocks are, on average, holding a PEG ratio of 6.3 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 184, putting it in the bottom 28% 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.

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


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