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

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In the latest trading session, Twilio (TWLO - Free Report) closed at $57.84, marking a -1.18% move from the previous day. This move lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.

Prior to today's trading, shares of the company had lost 10.53% over the past month. This has lagged the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.

Investors will be hoping for strength from Twilio as it approaches its next earnings release. In that report, analysts expect Twilio to post earnings of $0.35 per share. This would mark year-over-year growth of 229.63%. Meanwhile, our latest consensus estimate is calling for revenue of $985.03 million, up 0.2% from the prior-year quarter.

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.

Investors should also note any recent changes to analyst estimates for Twilio. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Twilio currently has a Zacks Rank of #2 (Buy).

Investors should also note Twilio's current valuation metrics, including its Forward P/E ratio of 34.37. This valuation marks a discount compared to its industry's average Forward P/E of 36.37.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.

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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