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

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The most recent trading session ended with Twilio (TWLO - Free Report) standing at $57.31, reflecting a +0.81% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.39%.

Heading into today, shares of the company had lost 13.18% over the past month, lagging the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39% in that time.

Market participants will be closely following the financial results of Twilio in its upcoming release. The company is predicted to post an EPS of $0.35, indicating a 229.63% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $985.03 million, indicating a 0.2% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.70 per share and revenue of $4.04 billion, indicating changes of +1233.33% and +5.67%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Twilio. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Twilio holds a Zacks Rank of #2 (Buy).

In terms of valuation, Twilio is presently being traded at a Forward P/E ratio of 33.39. This denotes a discount relative to the industry's average Forward P/E of 37.56.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 63, placing it within the top 25% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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