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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 $60.66, moving -0.33% from the previous trading session. This move lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.23%.

Heading into today, shares of the company had gained 0.5% over the past month, lagging the Computer and Technology sector's gain of 3.73% and the S&P 500's gain of 2.08% in that time.

Wall Street will be looking for positivity from Twilio as it approaches its next earnings report date. On that day, Twilio is projected to report earnings of $0.35 per share, which would represent year-over-year growth of 229.63%. Our most recent consensus estimate is calling for quarterly revenue of $985.03 million, up 0.2% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.70 per share and revenue of $4.04 billion. These totals would mark changes of +1233.33% and +5.67%, respectively, from last year.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 has moved 7.61% higher. Twilio currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Twilio is holding a Forward P/E ratio of 35.74. For comparison, its industry has an average Forward P/E of 37.18, which means Twilio is trading at a discount to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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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