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

Zacks Equity Research

Twilio Inc. (TWLO) closed at $147.46 in the latest trading session, marking a +1.26% move from the prior day. This move outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.71%.

Coming into today, shares of the company had lost 0.71% in the past month. In that same time, the Computer and Technology sector gained 2.34%, while the S&P 500 gained 1.93%.

Wall Street will be looking for positivity from TWLO as it approaches its next earnings report date. This is expected to be July 31, 2019. 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%. Our most recent consensus estimate is calling for quarterly revenue of $263.53 million, up 78.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.11 per share and revenue of $1.11 billion. These totals would mark changes of 0% and +70.13%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for TWLO. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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).

Looking at its valuation, TWLO is holding a Forward P/E ratio of 1313.86. This represents a premium compared to its industry's average Forward P/E of 64.44.

It is also worth noting that TWLO currently has a PEG ratio of 76.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TWLO's industry had an average PEG ratio of 3.52 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 60, putting it in the top 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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