One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Twilio stock now clears that threshold, with a jump from 69 to 80 Tuesday.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique rating measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
Decades of market research shows that the stocks that go on to make the biggest gains often have an RS Rating of above 80 as they launch their biggest runs.
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Is Twilio Stock A Buy?
After hitting a 52-week high of 457.30 on Feb. 18, Twilio stock has pulled back into a consolidation. It's currently trading between its 200- day and 50-day moving average, meaning it's now out of a proper buy range. Look for the stock to create a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips. Also, check out "Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks."
Earnings growth dropped in the most recent report from -17% to -222%. But revenue gains moved higher, from 62% to 67%.
Twilio stock earns the No. 55 rank among its peers in the Computer Software-Enterprise industry group. Docusign and Dynatrace are also among the group's highest-rated stocks.
