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

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Twilio (TWLO - Free Report) closed at $56.41 in the latest trading session, marking a +0.09% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq lost 3.22%.

Heading into today, shares of the company had gained 25.94% over the past month, outpacing the Computer and Technology sector's gain of 11.67% and the S&P 500's gain of 4.64% in that time.

Wall Street will be looking for positivity from Twilio as it approaches its next earnings report date. This is expected to be February 15, 2023. On that day, Twilio is projected to report earnings of -$0.09 per share, which would represent year-over-year growth of 55%. Our most recent consensus estimate is calling for quarterly revenue of $998.9 million, up 18.53% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Twilio. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 1.09% lower. Twilio is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Twilio currently has a Forward P/E ratio of 292.43. For comparison, its industry has an average Forward P/E of 42.33, which means Twilio is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% 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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