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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 at $108.11 in the latest trading session, marking a +0.61% move from the prior day. This change outpaced the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.03%.

Prior to today's trading, shares of the company had gained 8.56% over the past month. This has outpaced the Computer and Technology sector's gain of 5.05% and the S&P 500's gain of 3.31% in that time.

Wall Street will be looking for positivity from TWLO as it approaches its next earnings report date. The company is expected to report EPS of $0.01, down 75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $312.07 million, up 52.75% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for TWLO. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TWLO currently has a Zacks Rank of #3 (Hold).

Investors should also note TWLO's current valuation metrics, including its Forward P/E ratio of 513.94. This represents a premium compared to its industry's average Forward P/E of 54.27.

It is also worth noting that TWLO currently has a PEG ratio of 40.12. 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. TWLO's industry had an average PEG ratio of 2.39 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 100, putting it in the top 40% 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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