Twilio Inc. (TWLO) Gains But Lags Market: What You Should Know

Twilio Inc. (TWLO) closed at $97 in the latest trading session, marking a +0.38% move from the prior day. This move lagged the S&P 500’s daily gain of 3.35%. At the same time, the Dow added 3.19%, and the tech-heavy Nasdaq gained 3.62%.

Heading into today, shares of the company had lost 12.88% over the past month, lagging the Computer and Technology sector’s loss of 12.32% and outpacing the S&P 500’s loss of 14.37% in that time.

Investors will be hoping for strength from TWLO as it approaches its next earnings release. On that day, TWLO is projected to report earnings of -$0.11 per share, which would represent a year-over-year decline of 320%. Meanwhile, our latest consensus estimate is calling for revenue of $335.33 million, up 43.83% from the prior-year quarter.

TWLO’s full-year Zacks Consensus Estimates are calling for earnings of -$0.17 per share and revenue of $1.46 billion. These results would represent year-over-year changes of -206.25% and +28.67%, respectively.

Any recent changes to analyst estimates for TWLO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. TWLO currently has a Zacks Rank of #3 (Hold).

The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TWLO in the coming trading sessions, be sure to utilize Zacks.com.

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