Send me real-time posts from this site at my email
Zacks

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

Twilio Inc. (TWLO) closed the most recent trading day at $97.74, moving +0.94% from the previous trading session. This change outpaced the S&P 500's 0.53% loss on the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.94%.

Heading into today, shares of the company had gained 0.9% over the past month, outpacing the Computer and Technology sector's loss of 1.88% and the S&P 500's loss of 1.47% in that time.

TWLO will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2019. The company is expected to report EPS of $0.04, up 233.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $184.40 million, up 60.02% from the prior-year quarter.

Any recent changes to analyst estimates for TWLO should also be noted by investors. 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TWLO is currently a Zacks Rank #2 (Buy).

Looking at its valuation, TWLO is holding a Forward P/E ratio of 618.06. For comparison, its industry has an average Forward P/E of 47.26, which means TWLO is trading at a premium to the group.

Also, we should mention that TWLO has a PEG ratio of 68.67. 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 industry currently had an average PEG ratio of 2.47 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.