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Twilio (TWLO) Outpaces Stock Market Gains: What You Should Know

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Twilio (TWLO - Free Report) closed at $65.48 in the latest trading session, marking a +1.63% move from the prior day. This move outpaced the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 1.26%.

Prior to today's trading, shares of the company had gained 4.92% over the past month. This has lagged the Computer and Technology sector's gain of 6.31% and outpaced the S&P 500's gain of 4.31% in that time.

Twilio will be looking to display strength as it nears its next earnings release. In that report, analysts expect Twilio to post earnings of $0.29 per share. This would mark year-over-year growth of 363.64%. Our most recent consensus estimate is calling for quarterly revenue of $984.47 million, up 4.36% from the year-ago period.

TWLO's full-year Zacks Consensus Estimates are calling for earnings of $1.38 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +1020% and +5.86%, respectively.

Any recent changes to analyst estimates for Twilio should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. The Zacks Consensus EPS estimate has moved 4.34% higher within the past month. Twilio is currently a Zacks Rank #3 (Hold).

In terms of valuation, Twilio is currently trading at a Forward P/E ratio of 46.66. This represents a premium compared to its industry's average Forward P/E of 40.68.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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