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

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In the latest trading session, Twilio (TWLO - Free Report) closed at $67.65, marking a -0.62% move from the previous day. This change lagged the S&P 500's 0.37% loss on the day. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 1.18%.

Heading into today, shares of the company had gained 39.17% over the past month, outpacing the Computer and Technology sector's gain of 12.92% and the S&P 500's gain of 7.18% in that time.

Twilio will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.30, up 372.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $984.47 million, up 4.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.37 per share and revenue of $4.05 billion, which would represent changes of +1013.33% and +5.86%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Twilio. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.29% higher. Twilio is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Twilio currently has a Forward P/E ratio of 49.65. Its industry sports an average Forward P/E of 42.11, so we one might conclude that Twilio is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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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