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

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Twilio Inc. (TWLO - Free Report) closed the most recent trading day at $100.55, moving +0.16% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.08%.

Prior to today's trading, shares of the company had lost 2.87% over the past month. This has lagged the Computer and Technology sector's gain of 4.7% and the S&P 500's gain of 3.81% in that time.

Investors will be hoping for strength from TWLO as it approaches its next earnings release. In that report, analysts expect TWLO to post earnings of $0.01 per share. This would mark a year-over-year decline of 75%. Our most recent consensus estimate is calling for quarterly revenue of $312.07 million, up 52.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.13 per share and revenue of $1.12 billion, which would represent changes of +18.18% and +71.8%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TWLO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained stagnant. TWLO is currently a Zacks Rank #3 (Hold).

Looking at its valuation, TWLO is holding a Forward P/E ratio of 788.78. Its industry sports an average Forward P/E of 59.82, so we one might conclude that TWLO is trading at a premium comparatively.

Also, we should mention that TWLO has a PEG ratio of 61.58. 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. TWLO's industry had an average PEG ratio of 2.82 as of yesterday's close.

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 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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