Twilio(US:TWLO) ZACKS·2025-01-28 18:00Core Viewpoint - Twilio (TWLO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on changes in earnings estimates, leading to significant buying or selling actions that affect stock prices [4]. Twilio's Earnings Outlook - For the fiscal year ending December 2024, Twilio is expected to earn $3.68 per share, reflecting a 50.2% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Twilio has risen by 32.7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Twilio's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [10].