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Twilio (TWLO) Dips More Than Broader Markets: What You Should Know

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Twilio (TWLO - Free Report) closed the most recent trading day at $63.21, moving -1.79% from the previous trading session. This change lagged the S&P 500's 0.15% loss on the day. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 3.16%.

Coming into today, shares of the company had gained 7.14% in the past month. In that same time, the Computer and Technology sector lost 3.13%, while the S&P 500 lost 5.39%.

Investors will be hoping for strength from Twilio as it approaches its next earnings release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $999.82 million, up 14.22% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.09 per share and revenue of $4.26 billion, which would represent changes of +826.67% and +11.4%, respectively, from the prior year.

Any recent changes to analyst estimates for Twilio should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 35.8% higher. Twilio is currently a Zacks Rank #2 (Buy).

Digging into valuation, Twilio currently has a Forward P/E ratio of 59. For comparison, its industry has an average Forward P/E of 37.77, which means Twilio is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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