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Twilio Inc. (TWLO) Gains As Market Dips: What You Should Know

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In the latest trading session, Twilio Inc. (TWLO - Free Report) closed at $85.67, marking a +0.44% move from the previous day. This change outpaced the S&P 500's 1.54% loss on the day. At the same time, the Dow lost 1.49%, and the tech-heavy Nasdaq lost 2.17%.

Coming into today, shares of the company had gained 12.39% in the past month. In that same time, the Computer and Technology sector lost 4.64%, while the S&P 500 lost 6.77%.

Wall Street will be looking for positivity from TWLO as it approaches its next earnings report date. This is expected to be February 12, 2019. On that day, TWLO is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 233.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $184.34 million, up 59.96% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.11 per share and revenue of $625.73 million. These totals would mark changes of +157.89% and +56.82%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for TWLO. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. TWLO currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that TWLO has a Forward P/E ratio of 787.29 right now. This valuation marks a premium compared to its industry's average Forward P/E of 50.95.

It is also worth noting that TWLO currently has a PEG ratio of 87.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.7 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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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