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

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Twilio Inc. (TWLO - Free Report) closed the most recent trading day at $98.28, moving +0.5% from the previous trading session. This change outpaced the S&P 500's 0.3% gain on the day. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.3%.

Prior to today's trading, shares of the company had gained 0.14% over the past month. This has lagged the Computer and Technology sector's gain of 3.51% and the S&P 500's gain of 2.69% in that time.

TWLO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.02, down 50% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $312.07 million, up 52.75% from the year-ago period.

Any recent changes to analyst estimates for TWLO should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TWLO is currently a Zacks Rank #3 (Hold).

Digging into valuation, TWLO currently has a Forward P/E ratio of 768.35. For comparison, its industry has an average Forward P/E of 59.48, which means TWLO is trading at a premium to the group.

It is also worth noting that TWLO currently has a PEG ratio of 59.98. 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 industry currently had an average PEG ratio of 2.79 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 155, putting it in the bottom 40% 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.

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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