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Twilio Inc. (TWLO) Dips More Than Broader Markets: What You Should Know

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Twilio Inc. (TWLO - Free Report) closed the most recent trading day at $134.16, moving -0.53% from the previous trading session. This move lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.32%.

Prior to today's trading, shares of the company had gained 1.44% over the past month. This has lagged the Computer and Technology sector's gain of 2.43% and the S&P 500's gain of 3.31% in that time.

TWLO will be looking to display strength as it nears its next earnings release. In that report, analysts expect TWLO to post earnings of $0.02 per share. This would mark a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $263.53 million, up 78.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.11 per share and revenue of $1.10 billion, which would represent changes of 0% and +69.55%, respectively, from the prior year.

Any recent changes to analyst estimates for TWLO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 is currently a Zacks Rank #3 (Hold).

Looking at its valuation, TWLO is holding a Forward P/E ratio of 1216.87. This represents a premium compared to its industry's average Forward P/E of 60.45.

We can also see that TWLO currently has a PEG ratio of 71.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 2.74 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.

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


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