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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 $122.76, moving +1.83% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.01%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, added 1.43%.

Prior to today's trading, shares of the company had gained 23.27% over the past month. This has outpaced the Computer and Technology sector's gain of 2.89% and the S&P 500's gain of 0.19% in that time.

TWLO will be looking to display strength as it nears its next earnings release, which is expected to be February 5, 2020. 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 $312.19 million, up 52.81% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for TWLO. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection has moved 8.4% higher. TWLO is currently a Zacks Rank #3 (Hold).

Investors should also note TWLO's current valuation metrics, including its Forward P/E ratio of 600.25. This represents a premium compared to its industry's average Forward P/E of 56.47.

It is also worth noting that TWLO currently has a PEG ratio of 46.86. 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 2.65 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 98, putting it in the top 39% 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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