Why Twilio (TWLO) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum [2][3][4][5][6] Zacks Style Scores - Each stock is rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [4] - The Momentum Score identifies stocks with favorable price trends and earnings outlooks [5] - The VGM Score combines all three Style Scores to highlight stocks with the best overall characteristics [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +23.62% since 1988 [7] - There are typically over 800 stocks rated 1 or 2, making it essential to utilize Style Scores for selection [8] Investment Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [10] Company Spotlight: Twilio Inc. - Twilio Inc. is a cloud communications platform founded in 2007 and listed on NYSE in 2016, enabling real-time communications within software applications [11] - Twilio holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating potential for growth [12] - The company is forecasted to achieve year-over-year earnings growth of 22.3% for the current fiscal year, with a recent earnings estimate increase [12] - With strong Growth and VGM Style Scores, Twilio is recommended for investors' consideration [13]